Final Report

Mid Size Sustainable Energy Financing Facility (MidSEFF)

Soho Solar PV Plant: Non Technical Summary (NTS)

November 2016

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Soho SEPP – NTS Page ii November 2016

Final Report

European Bank for Reconstruction and Development

Soho Solar PV Plant: Non Technical Summary (NTS)

November 2016 The European Bank for Reconstruction and Development (EBRD) launched in January 2011 a financing facility aimed at scaling up Renewable Energy and Energy Efficiency investments in Turkey, to increase the country's energy savings and decrease its carbon emissions. The Turkish Mid Size Sustainable Energy Financing Facility (MidSEFF) launched by the EBRD with support from the European Investment Bank (EIB) and European Commission (source of the Technical Cooperation funds) will provide a total of EUR 1 billion in loans through 7 Turkish banks for on-lending to private sector borrowers. This report has been prepared by MWH S.p.A., D’Appolonia S.p.A., GFA and Frankfurt School of Management and Finance (hereinafter the “Consortium”) for the European Bank for Reconstruction and Development (EBRD) in relation to the above-captioned project and is confidential to the client. Neither the Consortium nor any person acting on their behalf, including any party contributing to this report, makes any warranty, expressed or implied, with respect to the use of any information disclosed in this report; or assumes any liability for direct, indirect or consequential loss or damage with respect to the use of any information disclosed in this report. Any such party relies upon this report at their own risk. This publication has been produced under the Mid Size Sustainable Energy Financing Facility which received a financial assistance from the European Union. The content of this publication is the sole responsibility of the Consortium and can in no way be taken to reflect the views of the EU or the EBRD. This disclaimer shall apply notwithstanding that the report may be made available to other persons for an application for permission or approval to fulfil a legal requirement.

Project Name:

Soho Solar PV Plant - Non Technical Summary (NTS) Controlled Copy

Rev. N. Date Description Amendment

Edited by Revised by Approved by

00 November 2016 Final Report M.Solari M. Solari D. Sener

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Table of Contents

Acronyms ............................................................................................. 4

1. Project Description ........................ Error! Bookmark not defined.

2. Environmental and Social Baseline .............................................. 9 2.1 Environmental description of the project area .................................................................9

3. Environmental and Social Impact ............................................... 10 3.1 Land Use ...................................................................................................................... 10 3.2 Water ............................................................................................................................ 10 3.3 Waste ........................................................................................................................... 10 3.4 Seismicity ..................................................................................................................... 10 3.5 Emissions: Noise and Particulate ................................................................................. 11 3.6 Landscape .................................................................................................................... 11

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Acronyms

EBRD European Bank for Reconstruction and Development

EMRA Energy Market Regulatory Authority

HEPP Hydro Electric Power Plant

IUCN International Union for Conservation of Nature

LC Least Concern

MidSEFF Mid Size Sustainable Energy Financing Facility

PC Project Consultant

PIR Project Information Report

NTS Non Technical Summary

VAT Value Added Tax

VU Vulnerable

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1. General Plant Description

The Soho Solar PV project has spread out 5 different provinces of Turkey which are 2.512 MW rated

power in Antalya, 3.96 MW rated power in Corum, 5.082 MW rated power in Eskisehir (as two SEPPs),

4.042 MW rated power in Usak (as three SEPPs) and 2.34 MW rated power in Mersin. Antalya and

Mersin projects are located in Mediterranean region, Corum project is located in Black Sea region,

Eskisehir project is located in Central Anatolia region and Usak project is located in Aegean region of

Turkey.

The construction of the projects has been started at the 3rd quarter of 2016 and all projects will be

completed at the 2nd quarter of 2017.

Un-licensed PV plant whose capacity is smaller or equal to 1 MWe does not need to apply for an

electricity production license. The Sponsor has received call letters for all sub-projects. Connection

agreements have been received for all sub-projects which are located in Çorum, Eskişehir and Uşak

from the relevant Electricity Distribution Companies. However, Connection agreements for sub-projects

located in Antalya and Mersin have not been received yet.

Aerial views of the proposed project sites are shown in the figures below.

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Figure 1-1: Sub- project site locations

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It must be bear in mind that SEPPs will be installed in same land in Antalya, Corum and Mersin regions.

On the other hand; there are two different lands in Eskisehir as Elcik and Kertek which are about 19.5

km distance away each other. In addition; Kertek region has spread out two very close lands which are

about 500 m away thus; it is assumed as one land by the PC. Besides; there are three different lands

in Usak as Esme Ahmetler, Ulubey Gedikler and Ulubey Omurca. First two locations are about 2 km

away from each other and Ulubey Omurca is located about 20 km far from these SEPPs.

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Table 1-1: Key project summary data

Key Project Summary Data

Project Borrower Soho SPP / Soho Madencilik Emlak İnşaat San. Tic. A.Ş.

Soho Madencilik Emlak İnş. San. Ve Tic. A.Ş. was established by

Ayrancıoğlu Family as a special purpose company for 25 Solar

Power Plants in 2014.

Project Sponsor

Soho Madencilik Emlak İnş. San. Ve Tic. A.Ş. was established by

Ayrancıoğlu family. Ayrancıoğlu family is owner of Yücel Boru

Group. Yücel Boru Group is one of Turkey’s leading company in

steel and pipe production industry.

EBRD Transaction Total Project cost is USD 24,929,313 including VAT, investment

period financing costs. The proposed financing scheme includes

debt financing of USD 19,000,000 (all financed through MIDSEFF)

and borrower’s contribution of USD 5,929,313. The debt to equity

ratio is approximately 24:76. The investment will be completed in

the first half of 2017.

Project Description / Business Purpose:

The investment subject to this report consists of 25 solar PV Plants

(SOHO SEPPs) is planning to construct in five different provinces

as it is also summarized below:

2.51 MW 4 un-licensed PV projects in Antalya Province

3.96 MW 4 un-licensed PV projects in Çorum Province

5.08 MW 6 un-licensed PV projects in Eskişehir Province

4.04 MW 7 un-licensed PV projects in Uşak and;

2.34 MW 4 un-licensed PV projects in Mersin Province.

The PC has been visited only the projects located in Uşak and Eskişehir.

It is understood that construction is expected to start on July 2016

when the loan agreement process completed and the construction

expected completion date is March 2017.

Key Parties Involved: EBRD Soho Madencilik Emlak İnş. San. Ve Tic. A.Ş. Garanti Bank

Project Name Soho Solar PV

Project Type PV Power Plant

Project Schedule Expected construction start date 3rd quarter of 2016, Expected operation date 2nd quarter of 2017

Base Case Scenario:

Installed Power 17.9 MWe

Annual Electricity Production

28,986,547 kWh/year in first full year of production

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2. Environmental and Social Baseline

2.1 Environmental description of the project area

The Soho Solar PV power projects are located in 5 different provinces of Turkey with 17.9 MW rated

power capacity. All PV Power Plants will be owned and operated by Soho Solar.

The projects in Antalya, Corum, Eskisehir and Usak are located in 2nd degree seismic zone with the risk

considered as medium. On the other hand; Mersin is located in 3rd degree seismic zone so that seismic

risk is considered low in this project area.

Although the sites were classified as dry marginal agricultural fields in official letters, the PC observed

two out of four site locations in Uşak Province are currently used for wheat vegetation.

Based on the research on the official website of the Ministry of Forestry and Hydraulic Works (MoFHW),

the PC observed that;

within the boundaries of Uşak Province, 1 canyon (Ulubey, 17km), 2 national park

(Başkomutanlık , 87 km), 1 Natural Park (Akdağ, 73 km);

within the boundaries of Eskişehir province:1 national park (Musa Özü, 110 km), 1 wetland area

(Davutoğlu Kuş Cenneti, 62 km);

within the boundaries of Mersin: 3 national park (Karaekşi, 94 km; Kuyuluk, 29km; Talat

Göktepe, 48);

within the boundaries of Çorum 2 national park (Sıklık, 69km; Çorum Çatak, 74 km);

within the boundaries of Antalya: 2 natural park (Kurşunlu Şelalesi, 126; Mavikent, 50km), 5

national park (Sarıkaya, 45km; Saklıkent, 33km; Dimçayı, 218; Sivridağ, 87; Köprülü Kanyon,

165km), 3 natural protection areas (Çığlıkara, 31km; Alacakara, 129; Dibek, 61km).

The proposed sub-projects sites have no interaction with any of these sites.

The PC requires performing a desk study for assessment of flora and fauna, especially for the aquatic

habitats in the nearby Çorum Project location. If these studies confirm that there are no valuable

species, monitoring of biota during construction and operation phases could be considered as not

strictly necessary.

Table 2-1: Environmental characteristic

ENVIRONMENTAL ASPECTS

PRESENCE/DISTRIBUTION COMMENTS

Land use Marginal agricultural fields

Non Agriculture

Utilization Permit must

be obtain

Water surface N.A. -

Protected area - -

Flora and Fauna

For the Çorum sub-projects,

DSI (State Hydraulic Works)

official opinion letter stated that

the Project settled nearby the

dry river bed

Desk based study for

assessment of flora

and fauna is required to

verify possible

presence of any

important species

Seismicity

Antalya, Corum, Eskisehir and

Usak are located in 2nd degree

seismic zone.

Mersin is located in 3rd degree

seismic zone

The seismic risk is

considered low in the

project area.

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3. Environmental and Social Impact

3.1 Land Use

All project areas are rented and/or owned by the sponsor. The Sponsor has to obtain a “Non-

Agricultural Utilization Permit” in accordance with the law no 5403 relating to soil protection and land

use and “Reconstruction Permit” in accordance with the law no 3194. The process is ongoing for the

project areas in Erzurum and Konya.

There is no settlement on the sub-project areas. There will be no involuntary resettlement nor economic

displacement as part of this project.

3.2 Wastewater

Drinking water will be purchased from nearby settlements and delivered to the project site.

Based on the assumption that the daily domestic water requirement is 150 litres per person,

considering employees during the construction phase and the operation phase, the domestic waste

water productions are estimated to be as following:

For all SEPPs in Uşak, Eskişehir, Çorum, Antalya and Mersin: 12 employees for the construction phase

and 1 employee the operations phase, 1.8 m3/day and 0.15 m3/day, respectively.

Domestic waste water generated by project workers will be collected in impermeable septic tanks

constructed in line with Turkish regulation. The domestic wastewater will be collected by vacuum trucks

of the related Municipalities.

According to the above information, the Project will not cause degradation in environmental quality in

terms of the water component.

3.3 Waste Production and Management

It is estimated that domestic waste, construction waste and excavated materials will be produced as

a result of construction activities.

Domestic solid waste will be produced by workers on-site. Assuming the daily domestic solid waste

production rate as 1.15 kg per person, the amount of domestic waste produced will be as follows;

For the SEPPs in Uşak, Eskişehir, Çorum, Antalya and Mersin; it is estimated that 13.8 kg/day of waste

will be produced by 12 workers to be employed during the construction phase and 1.15 kg/day of waste

will be produced by 1 worker to be employed during the operation phase.

It is required from the Sponsor that the recyclable waste are displaced in separate waste containers,

potentially hazardous waste is segregated from non-hazardous construction waste and domestic

waste. The PC requires the Sponsor to prepare a Waste Management Plan and to implement it

accordingly during the construction and operation phases.

For the land arrangement, there will be some excavated materials which will be used for landscaping

and there will be no remaining amount of excavation materials. Separate temporary storage areas,

having impermeable bases, must be designated for the storage of waste oils, fuels, hazardous

substances, etc.

3.4 Seismicity

The projects in Antalya, Corum, Eskisehir and Usak are located in 2nd degree seismic zone as shown

in figures below therefore; the seismic risk is considered as medium. On the other hand; Mersin is

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located in 3rd degree seismic zone so that seismic risk is considered low in this project areas.

3.5 Emissions: Noise and Particulate

Noise emissions will be generated during construction due to earthmoving works, construction of PV

Panels and operation of construction machinery and equipment. There is no study provided by the

Sponsor assessing the impact of noise level with respect to distances. Since noise will be generated

due to construction machinery and equipment and the closest houses are not close to the projects

areas, noise is expected to be below the noise limit values (70 dBA) defined by the Regulation on

Assessment and Management of Noise. During the operation phase, noise emission is not expected

to be produced.

Potential impacts of the Soho SEPPs on air quality would occur basically during the construction phase

of the project but since it will just be land arrangement, the impact will be very low. Dust formation

from earthmoving activities and other exhaust gas emissions from construction machinery will be the

main sources of impacts on air quality during the construction phase of the project which will be

temporary being during the construction phase. The air emissions that will just occur from the use of

the vehicles are expected to be below the legal limit values and for this reason a modelling study is

not necessary. No air emission is expected during the operations.

In conclusion, the effect of the Project on noise and air emission levels at the surrounding settlements

will be negligible.

3.6 Landscape

Since the solar energy power plants require large areas for solar radiation collection, land degradation

and habitat loss during the construction are crucial concerns about this kind of facilities. Therefore,

visual impact assessment is also another aspect to be determined. Although, there is no national

regulatory requirement, the PC requires an assessment of Visual Impact Assessment study with a

photomontage. Since there will be earth moving for large areas during the construction of plant

landscape reinstatement works is required by the PC.

Table 3-1: Impact Quantification

COMPONENT IMPACT QUANTIFICATION

Land use Different use of the land Agriculture lands

Water Utilization and Discharge 1.8 m3/day during construction

0.15 m3/day during operation

Waste Production of solid waste

13.8 m³/day for construction phase (12 workers) and 1.15 m³/day during operation phase (1 worker)

Excavation waste reused for land levelling

Seismicity Possible damage to

SEPPs

2nd and 3rd degree seismic zones.

The seismic risk is considered low in the project areas.

Emissions

Noise

Construction phase< 70dBA (law limit)

Operational phase: No disturbance for the nearest receptors

Particulate < 1.5 kg/h (law limit) monitoring campaign suggested during construction phase

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Landscape Visual Impact

The PC requires an assessment of Visual Impact Assessment study with a photomontage, the compensation measures could be put in place, if any.

MidSEFF Office

Asmadalı Sokak No:27

Kosuyolu

34718 Kadikoy, Istanbul

TURKEY

www.midseff.com

MidSEFF Office Cevatpasa Sokak No. 20 Kosuyolu 34718 Kadikoy, Istanbul TURKEY www.midseff.com