- EBRD provides loan to Mav Eletkrik
- Arikcayiri biomass power plant first of its kind in the country to use poultry waste
- Loan will improve holding company’s inclusivity credentials
The European Bank for Reconstruction and Development (EBRD) is providing a US dollar loan equivalent to €25 million to Türkiye’s Mav Elektrik Uretim Sanayi ve Ticaret A.S (Mav Elektrik) to replace loans that funded the construction of the Arikcayiri biomass power plant, which is fuelled by poultry waste.
The proceeds of the loan will help the company optimise its balance sheet, ensuring it has a sustainable financial footing with secured long-term funding.
Mav Elektrik is owned by Gulsan Holding, an existing client of the Bank. Located in Gaziantep, Gulsan Holding operates in the textile, technical textile, energy, automotive and construction sectors.
The transaction will also help Gulsan Holding expand its renewable energy capacity by another 40 MW of wind capacity, resulting in an estimated annual reduction of 36,897 tonnes in CO2 emissions.
Biomass is renewable organic material that comes from plants and animals. Mav Elektrik’s Arikcayiri power plant is the first large-capacity plant in Türkiye to be fuelled by poultry waste, representing a significant opportunity for the country’s green transition. In addition to generating power, Arikcayiri prevents any uncontrolled disposal of poultry waste and its misuse as a fertiliser, helping to prevent soil and water contamination and the spread of viral and bacterial diseases. Instead, as result of the electricity generation process, the power plant produces bacteria-free and nutrient-rich fertiliser.
The EBRD loan will also promote women’s access to employment in the field by introducing improved equal opportunity policies and practices. Gulsan Holding will aim to increase the percentage of women working across its operations.
The transaction will also seek to improve access to childcare in the Gaziantep Organized Industrial Zone with Gulsan Holding joining the Childcare Policy Working Group established by the EBRD. This will ensure the establishment of a multi-stakeholder partnership to provide childcare solutions for at least 200 children in the city.
Gaziantep was one of the cities affected by a series of earthquakes that hit the country on 6 February, causing over 50,000 fatalities. The childcare initiative is expected to alleviate care responsibilities for people in the region and allow them to remain in the workforce as they struggle to return to normal life.
To date, the EBRD has invested more than €17 billion in various sectors of the Turkish economy, largely in the private sector.
