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Islamic Development Bank invests $100 million in Turkey

Kizildere geothermal power plant, Turkey
Alexander Richter 12 Dec 2012

Islamic Development Bank invests $100 million in renewable energy and energy efficiency projects of the private sector in Turkey in cooperation with the Industrial Development Bank of Turkey.

Earlier this week, Islamic Development Bank (IDB) has signed an investment facility for $100 million with the Industrial Development Bank of Turkey for the development of renewable energy and energy efficiency projects by private sector enterprises in Turkey.

The facility, so the expectations, “will enable the construction of up to 600 MW of renewable energy installations in the country. The government of Turkey will provide a sovereign guarantee fo the IDB investment. The $100 million investment facility represents a first tranche of the $600-700 million earmarked for development of renewable energy projects in the IDB’s Member country partnership strategy for Turkey.”

Also reported earlier this week by Business Week, the private sector arm of Islamic Development Bank, Islamic Corp. has started a clean energy fund to finance renewable energy projects in Central Asia. The bank also plans a similar fund for Africa.

The $35 million Central Asian fund is a start and a North Africa fund with a size of $35-50 million will, so BusinessWeek, open soon.

While the amounts seem small, the bank understands this as a start to test the markets in these regions.

The bank has been active internationally in Islamic countries and has provided large scale financing for projects. Among this

Source: Islamic Development Bank, Business Week