March 7, 2013
(Press Release) -
IFC, a member of the World Bank Group, is providing an $8 million loan to help Modern Karton, a leading Turkish paper company, build a waste water recovery system that will reduce business risk and increase resource efficiency.
IFC's loan, made through its Cleaner Production Lending Facility (CPLF), will enable the company to conserve and re-use thousands of gallons of water each year and, as a result, invest in a new paper machine without the use of a deep drill to gain access to water. Modern Karton operates in a water stressed area, where limited groundwater availability is being exacerbated by climate change. Today the company must drill as far as 130 meters deep to access water, compared to 30 meters in the past.
"Water is a key input for the paper industry," said Ahmet Eren, Chairman of Eren Group, the parent company of Modern Karton. "Due to rapid industrial development and the effects of climate change, access to sustainable water has been an issue. The government of Turkey is encouraging water conservation, and industrial customers face limitations on water consumption. We are grateful for IFC for helping us find a solution that will allow us to expand without increasing water consumption."
Guy Ellena, IFC Director for Manufacturing and Services in Europe, the Middle East and North Africa said, "This project will help Modern Karton make a strategic investment to improve its resource efficiency and support the competitiveness of the company. We believe such projects are important to demonstrate that the careful assessment of climate change risks can actually increase the long-term sustainability of a business."
IFC has been supporting private sector development in Turkey for over 45 years. Turkey is the fourth-largest country in IFC's global portfolio. From 2008 to 2011, IFC invested $2 billion in 47 projects, and mobilized $1.7 billion through other financial institutions. In the first half of fiscal 2013, IFC invested $485 million in 11 projects in priority areas in Turkey, supporting exporters; micro, small and medium enterprises; renewable energy; energy efficiency; cleaner production and energy security; healthcare; infrastructure; trade finance and Turkish companies investing in the region and beyond.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world's most pressing development challenges. www.ifc.org.