Akinci Hydropower Project
Project Number | 7652 |
Environmental Category | B |
Date SPG disclosed | June 26, 2008 |
Projected Board date | July 29, 2008 |
Project Description
This summary covers an investment by Landesbank Baden-Wurttemberg (LBBW) of Germany in the Akinci hydropower project in Turkey. The investors have applied for a MIGA guarantee of approximately $191.99 million for a period of up to 15 years against the risks of transfer restriction, expropriation and war and civil disturbance, and breach of contract.
The project involves the construction and operation of a 102.2 MW hydropower plant. LBBW has a 49-year license to prepare, invest, construct and operate the project. The power plant will be located in the village of Akinci, near Tokat in the mid Black Sea region of Anatolia. It is one of five hydropower plants planned by the sponsor on the Kelkit river. Installed capacity of the facility is expected to be 102.2 MW, with total annual energy production of 411 GWh.
Turkey has one of the world's fastest growing electricity markets. Gross annual consumption growth has averaged about 7 percent in the past four years. However, supply is not keeping up with demand. Under various projections, regular power cuts are expected to become inevitable in the next three years, threatening economic growth and deterring foreign investment.
Environmental Categorization
The project is a Category B under MIGA’s environmental review procedures. Click here to view the Environmental and Social Review Summary and here to access the Environmental and Social Impact Assessment. Seismic risk assessment available here.
Development Impact
The project is expected to meet domestic power needs through environmentally and socially sustainable means and contribute significantly to the area’s economic and social development. The project is consistent with Turkish government policies of encouraging hydropower projects and meeting its targets for energy security and sustainability.