The World Bank has approved a 280 million euro project for the restructuring and rehabilitation of Turkey’s energy sector. The first objective of the loan is to mitigate the risk of electricity supply shortages during the period of energy reform transition – estimated to take until 2010. The second is to support the restructuring of the state-owned generation sector, operated by Elektrik Uretim AS (EUAS), into corporate entities and prepare them for operation in the electricity market and subsequent privatisation.

The loan will include enabling the companies formed from the restructuring process to function effectively in a competitive electricity market. There will also be a focus on the design and implementation of mechanisms to attract private investment in generation to ensure adequate supply.