Turkey: Uludağ Electricity Distribution Network Upgrade and Modernization Project

terminated / cancelled

The Project involves the provision of a senior secured loan of up to USD 28 million in Turkish lira (TRY) to support the regulatory capex program of Uludağ Elektrik Dağitim A.Ş. (UEDAŞ), the incumbent distribution network operator of the Uludağ region. The capex program is approved by the Energy Market Regulatory Authority (EMRA) under the Fourth Tariff Implementation Period 2021-2025 (TIP-4). UEDAŞ is one of the 21 electricity distribution companies of Turkey created in 2010 following the privatization of the sector. Its network supplies electricity to over 3.5 million users within a 35,501 km2 service area that encompasses four provinces bordering the Marmara Sea: Bursa, Balikesir, Canakkale and Yalova. In 2022, the region had a population of 5.1 million and consumed 19.6TWh, representing approximately 6% of Turkey's electricity demand. The UEDAŞ network has approx. 53,600km of distribution lines and 11,177 transformers. Since April 2022, the Borrower and its affiliates, Ulug Elektrik Dağıtım ve Perakende Hizmetleri Satis A.Ş. (Ulug) and Uludağ Elektrik Perakende Satis A.Ş. (UEPSAŞ) are wholly owned subsidiaries of Actis Long Life Infrastructure Fund (Actis). The Project will contribute to the expansion, rehabilitation, and efficiency of the Uludağ electricity distribution network through multiple investments, including the procurement, installation, and operation of medium- and low-voltage overhead lines, underground lines, transmission connection lines and transformers. Through these investments, the Project will help reduce power outages, control theft and losses, enhance the operation's environmental and safety standards, and improve the network's efficiency and reliability. The Project will expand the digitalization of the network through technology investments and improve the average age of equipment.