The FINANCIAL — IFC, a member of the World Bank Group, is partnering with a leading private power company, UNIT, in an effort to ramp up electricity generation in the Middle East and Southeastern Europe.
IFC will subscribe to a 23 percent stake in UNIT subsidiary UNIT Investment NV. IFC and UNIT will raise $365 million for Unit Investment NV, which will help it expand in a region where many countries struggle with power shortages. The company specializes in highly efficient gas-fired combined-cycle (CCGT) power plants and clean, renewable energy, including hydro, wind, and biomass facilities, according to IFC.
UNIT Investment NV is also currently in advanced development of the 1260-megawatt Zakho CCGT power project in Iraq, for which IFC will be leading all financial aspects of the project (as the mandated lead arranger).
“UNIT is already well known for its pioneering role in the energy markets of Turkey and the surrounding region,” said Unal Aysal, UNIT Chairman. “Today, by signing this agreement with IFC, UNIT is laying the foundation of a strategic partnership to continue its growth, increase its competitiveness, and enhance its corporate governance in preparation for an inital public offering in the future.”
Wiebke Schloemer, IFC’s Head of Infrastructure in Europe, the Middle East, and North Africa, said: “The energy sector remains a priority for IFC in Turkey and the region, where there are ever-increasing demands for power. This investment represents one of IFC’s largest equity investments in Turkey’s power sector and will boost clean power generation. Such projects help bolster energy production, mitigate the impact of climate change, and promote further investments by the private sector.”
UNIT Investment NV is headquartered in Amsterdam with operations in Turkey, Southeast Europe, and the Middle East. The company’s plants generate a total of 1927 megawatts of electricity. It is currently developing the 1260-megawatt Zakho CCGT power project in Iraq, for which IFC is the mandated lead arranger.
Power generation is a pillar of IFC’s work in Eastern Europe and the Middle East. In the last five years, IFC has leveraged more than $3 billion in Turkey alone to support private-sector efforts designed to increase energy generation, improve energy efficiency, and mitigate the impacts of climate change.
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