The EBRD and TASK Group, a privately owned group specialising in water and wastewater management, have joined forces to expand private sector participation in the water sector in Turkey, EBRD reported.
The Bank is extending two loans to TASK Group companies for a total of €16 million to finance TASK's planned investments into the country's water and wastewater infrastructure.
The first two long-term senior loans have been signed with TASK Güllük and TASK Dilovasi - two regional branches of TASK Group.
The EBRD's Director for Municipal and Environmental Infrastructure Jean-Patrick Marquet said these were the first EBRD's loans in municipal sector in Turkey, providing long-term funding for securing investments in water and wastewater sector in Turkey. .
"Our financing is helping a domestic private water operator develop its business and expand private sector participation in the water and wastewater sector in Turkey. With the EBRD's support, TASK will be able to provide a major improvement in water and wastewater services for the people in these regions," he added.
The municipalities in Turkey serve around 80 per cent of the total population. Most of the population served have access to water and wastewater systems.
However, as experts say, the existing water supply network requires rehabilitation and there is an immense need for wastewater treatment facilities, while less than 40 per cent of Turkey's population are connected to wastewater treatment plants, which treat wastewater before it is discharged into the country's rivers and seas.
Ahmet Tuna Ozaner, CEO of Task Group said: "We are delighted to have cooperation with a respected financial institution as the EBRD. The funding we received today will go toward refinancing and extension of our existing projects. We will continue to look at the Turkish water supply and wastewater treatment sector in close cooperation with the EBRD".
Over the next 15 years it is estimated Turkey will need about €60-70 billion to upgrade its water and wastewater infrastructure and bring it in line with EU norms. Repairing the existing and constructing new wastewater facilities will take up most of the required investments.
In Turkey EBRD focuses on renewable and sustainable energy, small business in the regions, agribusiness, municipal, environment and other infrastructure, and privatization. Since the beginning of its operations in Turkey, the EBRD has invested about €500 million in about 20 projects, with 100 per cent of the projects' being investments into the development of the private sector.
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