World Bank awards contract for geothermal Risk Sharing Mechanism program in Turkey

World Bank awards contract for geothermal Risk Sharing Mechanism program in Turkey Drilling rig on site in Manisa, Turkey (source: Sanko Enerji)
Alexander Richter 13 Mar 2018

The World Bank and partner TKB have announced the award of a consultancy contract for the management of a Risk Sharing Mechanism for geothermal projects in Turkey, to a consortium of AF-Consult, AFM, Verkís and ISOR.

As part of the Turkey Geothermal Development Project, the World Bank has now awarded the contract for consultancy services related to its Risk Sharing Mechanism program in Turkey.

We previously reported on that program, which is supplied with $38 million in funding, that will be used to share the resource risk during the exploration drilling phase with private investors.

About $1.8 million will be provided as a grant to TKB to fund technical assistance related to the management of the RSM to manage the fund; most importantly fund the services of a technical consultant that will support TKB in the implementation of the RSM.

The Risk Sharing Mechanism has been established and TKB has now chosen the RSM consultant.  It is anticipated that eligible developers can submit applications for risk coverage by the RSM mechanism in May 2018.

The contractor consortium that won the bid consists of AF-Consult Switzerland Limited (JV Leader), Verkis (Iceland), AFM (Turkey), and ISOR Iceland GeoSurvey (Iceland).

At the IGC 2018 Turkey geothermal congress in Ankara, 14-15 March 2018, the World Bank will host a workshop with the Development Bank of Turkey (TKB). In the workshop the Geothermal Risk-Sharing Mechanism will be presented, informing investors and industry on the requirements for coverage by the RSM and the details of the process for submitting applications.

Details on the framework of the RSM program can be found here.

Source: World Bank

Note: an earlier version of this text was referring to a workshop in April of 2018, but it is now planned to hold that workshop in May 2018