IFC makes first move into Turkey

The World Bank Group member, together with the IFC Global Infrastructure Fund, have backed GAMA Enerji, a power and water services firm.

International Finance Corporation (IFC), a member of the World Bank Group, has teamed with the IFC Global Infrastructure Fund to acquire a 27 percent stake in GAMA Enerji, a Turkish power and water services business.

The sum paid for the stake was not disclosed but a statement said it was IFC and the Fund’s first equity investment in Turkey and one of the IFC’s largest equity investments in the infrastructure sector globally.

Based in the capital city of Ankara, and with operations in Jordan as well as Turkey, GAMA Enerji has an existing net installed capacity of 258 megawatts (MW) and 100 million cubic meters (MCM) per annum of water conveyance capacity.

It is currently constructing an 840MW power project and also developing a pipeline of greenfield power projects in Turkey accounting for a further 255MW.

The energy sector is a particular focus of Turkish development with energy generation, energy security, energy efficiency and climate change mitigation seen as key investment areas.

“This is the IFC Global Infrastructure Fund’s first investment in the EMENA [Europe, Middle East & North Africa] region as well as the power sector globally,” said Darius Lilaoonwala, co-head of the Fund, in a statement. “We are pleased to partner with GAMA Enerji, a growing company and important player in the power and water sectors in Turkey and the region.”

The IFC Global Infrastructure Fund closed on $1.2 billion in October 2013, beating a $1.0 billion target, with the aim of investing in infrastructure sectors including power, transport, utilities and telecommunications in developing countries.

It has since invested in the likes of Chinese oil and gas firm China Tian Lun Gas, pan-African telecoms business IHS Nigeria, and Colombian transportation company Pacific Infrastructure Ventures.