Istanbul, Turkey, March 7, 2013—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. For more
information, visit www.ifc.org.