The World Bank approved a 280 million euro (about 358 million U.S. dollars) loan to Turkey on Tuesday to help rehabilitate the country's electricity generation industry, Turkey's semi-official Anatolia news agency reported on Wednesday.
The World Bank loan, granted to Turkey's Elektrik Uretim AS ( EUAS) for the Electricity Generation Rehabilitation and Restructuring Project, has a 15-year maturity, including a 5-year grace period, said the report.
The EUAS, Turkey's state-owned electricity generation company, owns and operates about 25,000 MW of thermal and hydro generation capacity in the country.
The project is aimed to mitigate the risk of electricity supply shortages in Turkey during an energy reform transition period until 2010.
Another goal of the project is to support the restructuring of the state-owned generation sector operated by EUAS into cooperate entities and prepare them for operation in the electricity market and for subsequent privatization, according to the report.