TÜRKİYE KALKINMA VE YATIRIM BANKASI A.Ş. Project Financial Statements of “Geotermal Development Project (Loan No: 8652-TR) With Independent Auditors’ Report As at 31 December 2020 21 October 2021 This report contains 3 pages of independent auditors’ report and 6 pages of project financial statements and notes to the project financial statements. TÜRKİYE KALKINMA VE YATIRIM BANKASI A.Ş. GEOTHERMAL DEVELOPMENT PROJECT LOAN NO: 8652-TR AS AT 31 DECEMBER 2020 (Amounts are expressed in US Dollars, unless otherwise stated) PROJECT BALANCE SHEET ASSETS Designated Accounts - Amounts due from Beneficiary Enterprises 100,000,000 Sanko Enerji San. Ve Tic. A.Ş. 70,000,000 Sis Enerji Üretim A.Ş. 30,000,000 Amounts Received from Beneficiary Enterprises - TKYB’s Account - TOTAL ASSETS 100,000,000 LIABILITIES Amount due to World Bank 100,000,000 Credit Line 99,750,000 Up-front fee 250,000 TOTAL LIABILITIES 100,000,000 1 TÜRKİYE KALKINMA VE YATIRIM BANKASI A.Ş. GEOTHERMAL DEVELOPMENT PROJECT LOAN NO: 8652-TR AS AT 31 DECEMBER 2020 (Amounts are expressed in US Dollars, unless otherwise stated) Designated Account Statement Opening balance as at 1 January 2020 - IBRD advances during the year 39,900,000 Total funds available 39,900,000 Refund to IBRD from designated account during the year - Loans advanced/expenses paid in period 39,900,000 Closing Balance as at 31 December 2020 - Difference between accounting records and Bank statement - 2 TÜRKİYE KALKINMA VE YATIRIM BANKASI A.Ş. GEOTHERMAL DEVELOPMENT PROJECT LOAN NO: 8652-TR AS AT 31 DECEMBER 2020 (Amounts are expressed in US Dollars, unless otherwise stated) NOTES TO THE PROJECT FINANCIAL STATEMENTS 1- Objectives and Nature of The Project Each of Türkiye Kalkınma ve Yatırım Bankası A.Ş. (“TKYB”) and Türkiye Sınai Kalkınma Bankası A.Ş. (“TSKB”) signed a Loan Agreement with International Bank for Reconstruction and Development (the “IBRD”) for a loan of USD 100,000,000 for TKYB and USD 150.000.000 for TSKB for financing of Geothermal Development Project (“the Project”) on 30 November 2016 under Treasury repayment guarantee. The primary objective of the Project is to scale up private sector investment in geothermal energy development in the Rebuplic of Turkey. The Project consists of two parts: (i) Part A: Risk Sharing Mechanism (“RSM”) for Resource Validation and (ii) Part B: Loan Facility for Resource Development. USD 1,800,000 will be allocated to consulting and technical services regarding the set-up and operation of the Risk Sharing Mechanism (RSM) at the Bank. The remaining USD 38,000,000 will be used for risk sharing during the initial phase of drilling operations that will be carried out by investors. 2- Operations Of The Project Implementing Agency TKYB was founded in Ankara as Devlet Sanayi ve İşçi Yatırım Bankası in 1975, under the control of the Ministry of Industry. The Bank was founded by the State mainly to promote investment in certain sectors of the country. With the decision of the “Supreme Planning Board” dated 20 January 1989, the Bank has been merged with the T.C. Turizm Bankası A.Ş. The name of the bank has been changed as Türkiye Kalkınma Bankası A.Ş. in 1988 following a decision of the Council of Ministers and on 24 October 2018 it has been changed as Türkiye Kalkınma ve Yatırım Bankası A.Ş. The Bank is subject to the registered capital system. 99.08% of the capital is owned by the Undersecretariat of Treasury of the Turkish Republic and the remaining shares are quoted in the Borsa İstanbul. The Bank currently provides investment-banking services mainly to the financing of industry, tourism, education, health and energy sectors. Besides supplying loans in medium and long- terms to the above mentioned sectors, the Bank also participates in other activity fields like project assessment, leasing, rehabilitation, equity participation, fund management, banking operations and training activities. 3- Main Accounting Policies The Bank uses the cash basis of accounting to account for project transactions. Disbursements to the local firms are recorded in local currency and translated to USD with the exchange rate as of the date of the disbursement. The collections from the local firms are translated with the exchange rates prevailing on the collection date. 4- Restricted Use Of Funds And Other Assets In accordance with the loan agreement between the Bank and the IBRD, the funds available in the Designated Account are restricted to project purposes only. 3 TÜRKİYE KALKINMA VE YATIRIM BANKASI A.Ş. GEOTHERMAL DEVELOPMENT PROJECT LOAN NO: 8652-TR AS AT 31 DECEMBER 2020 (Amounts are expressed in US Dollars, unless otherwise stated) NOTES TO THE PROJECT FINANCIAL STATEMENTS (continued) 5- Uses of Funds by Loan Customer Project Activities Year to Date Cumulative to Date Sanko Enerji San. Ve Tic. A.Ş. 39,900,000 69,825,000 Sis Enerji Üretim A.Ş. - 29,925,000 Total Loan Extended 39,900,000 99,750,000 Up-front Fee 100,000 250,000 Total Uses of Funds 40,000,000 100,000,000 4 TÜRKİYE KALKINMA VE YATIRIM BANKASI A.Ş. GEOTHERMAL DEVELOPMENT PROJECT LOAN NO: 8652-TR AS AT 31 DECEMBER 2020 (Amounts are expressed in US Dollars, unless otherwise stated) 6- Designed Account Detailed Account Statement Value Date Withdrawal from IBRD in Disbursements in USD USD Remark Withdrawal 16 April 2018 20,000,000 -- Disbursement 26 April 2018 -- 20,000,000 SANKO ENERJİ Withdrawal 14 May 2018 9,925,000 -- Disbursement 21 May 2018 -- 9,925,000 SANKO ENERJİ Withdrawal 7 June 2018 12,455,000 -- Disbursement 12 June 2018 -- 7,945,000 SİS ENERJİ Disbursement 12 June 2018 -- 4,500,000 SİS ENERJİ Withdrawal 3 August 2018 2,775,460 -- Disbursement 3 August 2018 -- 10,000 SİS ENERJİ Disbursement 13 August 2018 -- 2,775,460 SİS ENERJİ Withdrawal 14 February 2019 4,285,000 -- Disbursement 14 February 2019 -- 4,285,000 SİS ENERJİ Withdrawal 23 March 2019 3,080,000 -- Disbursement 23 March 2019 -- 3,080,000 SİS ENERJİ Withdrawal 31 July 2019 7,329,540 -- Disbursement 31 July 2019 -- 7,329,540 SİS ENERJİ (*) Disbursement 30 December 2019 -- 20,000,000 SANKO ENERJİ (*) Disbursement 30 December 2019 -- 10,000,000 SANKO ENERJİ Withdrawal 21 January 2020 20,000,000 -- Disbursement 15 April 2020 -- 9,900,000 SANKO ENERJİ Withdrawal 15 May 2020 19,900,000 -- Total 99,750,000 99,750,000 (*) The loan extended to Sanko Enerji amounting to 30,000,000 USD was provided by TKYB on 30 December 2019. This amount was provided to the project by IBRD on 21 January and 15 May 2020. 5 TÜRKİYE KALKINMA VE YATIRIM BANKASI A.Ş. GEOTHERMAL DEVELOPMENT PROJECT LOAN NO: 8652-TR AS AT 31 DECEMBER 2020 (Amounts are expressed in US Dollars, unless otherwise stated) NOTES TO THE PROJECT FINANCIAL STATEMENTS (continued) 7- International Bank For Reconstruction And Development (IBRD) Loan During 2020, IBRD has provided the designated account of the project with a payment of USD 39,900,000 as new tranches to be used together with USD 100,000 from the up front fee for the payments of loans provided for project sponsors / TKYB clients. 8- Subsequent Events None. 6