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Project. Documentation Requirements for Replenishment Would Follow Standard Bank Procedures As Described in the DL Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD636 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED IBRD LOAN IN THE AMOUNT OF EURO 217.6 MILLION Public Disclosure Authorized AND A CTF LOAN IN THE AMOUNT OF US$ 50 MILLION WITH THE GUARANTEE OF THE REPUBLIC OF TURKEY TO THE TEIAS- TURKIYE ELEKTRIK ILETIM A.S. FOR A Public Disclosure Authorized RENEWABLE ENERGY INTEGRATION PROJECT (P144534) APRIL 16, 2014 Sustainable Development Department Turkey Country Unit Europe and Central Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective February 28, 2014) Currency Unit for IBRD Loan = Euro Currency Unit for CTF Loan = USD US$1 = Euro 0.725 TURKEY - GOVERNMENT FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS CPS Country Partnership Strategy NCCS National Climate Change Strategy Organization for Economic Co- DAM Day-ahead Market OECD operation and Development DC Direct Current OHLs Overhead lines Operational Risk Assessment CO2 Carbon dioxide ORAF Framework CTF Clean Technology Fund PCU Project Coordination Unit ECSEE Energy Community of South East Europe PDO Project Development Objective Electricity Market Financial EMP Environmental Management Plan PMUM Reconciliation Center (Turkish) EMRA Electricity Market Regulatory Agency LAAP Land Acquisition Action Plan European Network of Transmission System ENTSO-E RER Renewable Energy Resource Operators for Electricity Renewable Energy Resources EPIAS Electricity Market Operators RERC Certificates EUAS Electricity Generating Corporation RTU Remote Terminal Unit Supervisory Control and Data GDP Gross Domestic Product SCADA Acquisition GEO Global Environment Objective SDR Special Drawing Rights Turkish Electricity Generating and GHG Greenhouse Gas TEAS Transmission Corporation International Bank for Reconstruction and Turkish Electricity Distribution IBRD TEDAS Development Corporation Turkish Electricity Transmission IPCC Intergovernmental Panel on Climate Change TEIAŞ Corporation kWh Kilo Watt-Hour TEK Turkish Electricity Authority Turkish Electricity Trading and MENR Ministry of Energy and Natural Resources TETAS Contracting Corporation United Nations Framework MMS Market Management System UNFCCC Convention on Climate Change MW Mega Watt WPP Wind Power Plants NTGP National Transmission Grid Project Regional Vice President: Laura Tuck Country Director: Martin Raiser Sector Director: Laszlo Lovei Sector Manager: RanjitLamech Task Team Leader: Mikul Bhatia Co-Task Team Leader: YesimAkcollu TURKEY RENEWABLE ENERGY INTEGRATION PROJECT (P144534) TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Situations of Urgent Need of Assistance or Capacity Constraints ............................... 1 C. Sectoral and Institutional Context ................................................................................. 2 D. Higher Level Objectives to which the Project Contributes .......................................... 6 II. PROJECT DEVELOPMENT OBJECTIVE(S)..............................................................7 A. Project Development Objective (PDO) ........................................................................ 7 B. Global Environment Objective (GEO) ......................................................................... 7 C. Project Beneficiaries ..................................................................................................... 7 D. PDO Level Results Indicators ....................................................................................... 7 III. PROJECT DESCRIPTION ..............................................................................................8 A. Project Components ...................................................................................................... 8 B. Project Financing ........................................................................................................ 10 C. Series of Project Objective and Phases ....................................................................... 11 D. Lessons Learned and Reflected in the Project Design ................................................ 11 IV. IMPLEMENTATION .....................................................................................................12 A. Institutional and Implementation Arrangements ........................................................ 12 B. Results Monitoring and Evaluation ............................................................................ 12 C. Sustainability............................................................................................................... 13 V. KEY RISKS AND MITIGATION MEASURES ..........................................................13 A. Risk Ratings Summary Table ..................................................................................... 13 B. Overall Risk Rating Explanation ................................................................................ 14 VI. APPRAISAL SUMMARY ..............................................................................................14 A. Economic and Financial (if applicable) Analysis ....................................................... 14 B. Technical ..................................................................................................................... 16 C. Financial Management ................................................................................................ 16 D. Procurement ................................................................................................................ 17 E. Social (including Safeguards) ..................................................................................... 17 F. Environment (including Safeguards) .......................................................................... 18 Annex 1: Results Framework and Monitoring .........................................................................19 Annex 2: Detailed Project Description .......................................................................................22 Annex 3: Implementation Arrangements ..................................................................................32 Annex 4: Operational Risk Assessment Framework (ORAF) .................................................43 Annex 5: Implementation Support Plan ....................................................................................49 Annex 6: Clean Technology Fund ..............................................................................................51 Annex 7: Economic and Financial Analysis ..............................................................................65 Annex 8: Social and Environmental Safeguards.......................................................................71 Annex 9: Strengthening the Site-Selection Process for WPPs .................................................75 PAD DATA SHEET Turkey Renewable Energy Integration (P144534) PROJECT APPRAISAL DOCUMENT EUROPE AND CENTRAL ASIA ECSEG Report No.: PAD636 . Basic Information Project ID EA Category Team Leader P144534 B - Partial Assessment Mikul Bhatia Lending Instrument Fragile and/or Capacity Constraints [ ] Specific Investment Loan Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 10-May-2014 30-June-2019 Expected Effectiveness Date Expected Closing Date 01-Jul-2014 30-June-2019 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Ranjit J. Lamech Laszlo Lovei Martin Raiser Laura Tuck . Borrower: TEIAS- TurkiyeElektrikIletim A.S. Responsible Agency: TEIAS- Turkiye Elektrik Iletim A.S. Contact: Mr. Kemal Yildir Title: General Manager Telephone No.: 90-312-203-8063 Email: [email protected] . Project Financing Data(in USD Million) [ X ] Loan [ ] Grant [ ] Guarantee [ ] Credit [ ] IDA Grant [ ] Other Total Project Cost: 475.00 Total Bank Financing: 350.00 Financing Gap: 0.00 . Financing Source Amount Borrower 125.00 International Bank for Reconstruction and 300.00 Development i Clean Technology Fund 50.00 Total 475.00 . Expected Disbursements (in USD Million) Fiscal Year 2014 2015 2016 2017 2018 2019 0000 0000 0000 Annual 25.00 57.00 80.00 80.00 80.00 28.00 0.00 0.00 0.00 Cumulative 25.00 82.00 162.00 242.00 322.00 350.00 0.00 0.00 0.00 . Proposed Development Objective(s) To assist Turkey in meeting its increased power demand by strengthening the transmission system and facilitating large-scale renewable energy generation. Components Component Name Cost (USD Millions) Component-1: Upfront development of transmission infrastructure to facilitate 59.00 faster development of WPPs Component-2: Smart-grid investments to strengthen grid operation and 68.00 management in face of higher wind energy generation Component-3: Lapseki-Sutluce 380 kV Submarine Power Cable to better inter- 79.20 connect wind energy locations with other parts of Turkey Component-4: Strengthening of Transmission Networks to cater to growing 206.80 demand and supply of electricity in Turkey . Institutional Data Sector
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