World Bank provides 278.8 mln USD in loan for Turkey

The World Bank on Friday approved a loan of 205 million euro (about 278.8 million U.S. dollars) for Turkey's electricity distribution rehabilitation project.

In a written statement, the World Bank said that the loan would be granted to Turkish Electricity Distribution Company (TEDAS) and it will be under the Turkish government's guarantee.

The main objective of the project is to improve the quality of Turkey's electricity distribution and expansion, said the World Bank, adding that the project will also help to enhance the distribution system in critical areas, reducing failures and expanding capacity.

Investments will also help improve the distribution system's compliance with safety regulations, the World Bank said.

Regarding the approval of the loan, Ulrich Zachau, country director for Turkey, stated that a reliable and efficient electricity distribution system is important for ensuring power supply in Turkey and for sustained economic growth, especially as electricity demand continues to rise.

"The planned investments will help strengthen the existing network, which in parts is outdated, and help increase its efficiency and reliability. We also hope that the project will enhance the attractiveness of the distribution business for private investment," Zachau said.

The World Bank loan to TEDAS has a 15-year maturity, including a 5-year grace period. (one U.S. dollar = 0.74 Euro )

Source: Xinhua