World Bank Approves €280 Million Loan to Boost Türkiye's Electricity Sector

The World Bank approved a 280 million Euro (roughly 350 million USD) loan for Türkiye in June 2006, targeting the rehabilitation and restructuring of the country's state-owned electricity generation capacity.

The funds will go to Elektrik Uretim AS (EUAS), the government-owned utility that manages approximately 25,000 MW of thermal and hydroelectric capacity. The loan carries a 15-year repayment term with a five-year grace period.

The project has two core goals: reducing the risk of power shortfalls expected between 2008 and 2010, and preparing EUAS's generation assets for eventual privatization by restructuring them into corporate entities able to compete in an open electricity market.

World Bank Country Director Andrew Vorkink said the loan would address two priorities, calling it essential to rehabilitate underperforming assets and help establish a credible track record for Türkiye's emerging competitive power market, so as to ease investor uncertainty ahead of privatization.

Historical summary. TurkishPress restated this wire report, first published in June 2006, in its own words.