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PROGRAM INFORMATION DOCUMENT (PID) 
CONCEPT STAGE 
Report No.:  53291 
Operation Name 
Environmental Sustainability and Energy Sector (ESES) DPL2 
Region 
Europe and Central Asia 
Sector 
General water, sanitation and flood protection sector (35%); 
Power (35%); Renewable energy (15%); General energy sector 
(15%) 
Project ID 
P117651 
Borrower(s) 
Republic of Turkey 
Implementing Agency 
Under-secretariat of Treasury 
Inonu Bulvari 06510 
Ankara 
Turkey 
Contact: Mr. Ozgur Pehlivan, Deputy Director General 
Tel: 90+312-212-8256 
Fax: 90+312-212-8550 
ozgur.pehlivan@hazine.gov.tr 
Date PID Prepared 
December 10, 2009 
Estimated Date of 
Appraisal Authorization 
February 5, 2010 
Estimated Date of Board 
Approval 
April 29, 2010 
1.  Key development issues and rationale for Bank involvement 
 
The proposed Second Environmental Sustainability and Energy Sector (ESES) Development Policy 
Loan (DPL)
 supports the development goals articulated in Turkey’s Ninth Development Plan and 
Turkey’s transition from crisis management to growth in the recovery while strengthening the 
framework for long-term sustainable growth across the economy and in the energy sector in particular.  
Given the tightening electricity and gas supply/demand balances and the sizeable contribution of the 
energy sector to Turkey's greenhouse gas emissions, energy has been identified as the key sector for 
continued support.  Furthermore, this energy efficiency - energy security - environment nexus is 
consistent with the energy, climate and environmental goals of the European Union (EU) and effectively 
contributes to Turkey's EU accession process.  The proposed program supports the improved 
competitiveness and employment pillar and the efficient provision of high-quality public services pillar 
of the Country Partnership Strategy. 
 
2. Proposed objective 
 
The development objective of the Government’s program expected to be supported by ESES DPL2 is to 
help: (a) integrate principles of sustainable development, including climate change considerations, in 
key sectoral policies and programs ; (b) improve the effectiveness and efficiency of environmental 
management processes, in the context of harmonization with the Environmental Acquis of the European 
Union; and (c) enhance energy security by promoting private sector low-emission investments and 
operations.   
 
3. Preliminary description 
 
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The program expected to be supported by ESES DPL2 is tentatively structured under three pillars: (a) 
Pillar I - Energy Sector; (b) Pillar II - Climate Change; and (c) Pillar III - Sustainable Environment 
Management.  Pillar I will continue the energy program supported under DPL1 (approved by the World 
Bank on June 11, 2009), covering energy pricing, electricity markets, renewable energy, energy 
efficiency, electricity distribution and generation privatization, and possibly also gas supply security and 
wholesale gas market development. Pillar II supports Turkey's National Climate Change Strategy 
–
approved in December 2009 – following the ratification of the Kyoto Protocol in February 2009.   Pillar 
III supports sustainable environmental management and is focused on sector/sub-sectors where 
environmental degradation could hamper sustainable development and the transposition of EU 
Environmental 
Acquis
.
4. Environment Aspects 
 
The program expected to be supported by the proposed ESES DPL2 is likely to have significant positive 
effects on the environment and natural resources
.
By supporting the Government’s National Climate 
Change Strategy and environmental management and energy sector policies, laws and regulations, the 
proposed DPL supports Turkey’s efforts to strengthen the policy foundations (a) for contributing to the  
global effort and addressing climate change challenges and mainstreaming climate change 
considerations in sector policies; (b) to mainstream sustainable development principles and reducing the 
cost of environmental degradation; and (c) enhancing energy security through private investment low-
emission investments and operations.
 
The program is expected to help enhance Turkey’s ability to 
develop and implement environmental policy more effectively. 
 
5. Tentative financing 
Source: ($m.) 
Borrower 0 
International Bank for Reconstruction and Development 
1000 
 Total 
1000 
 
6. Contact point 
Contact: Kari J. Nyman 
Title: Lead Specialist 
Tel: (202) 458-1469 
Fax: (202) 614-1569 
Email: Knyman@worldbank.org