Türk Eximbank, Turkey’s official export credit agency, is set to provide $79.2 million of reinsurance backing to the UK Export Finance Agency (UKEF) for its energy projects in Iraq.
A statement from Trade Minister Ruhsar Pekcan says the amount to be provided to UKEF is proportionate to the value of Turkish exports and services that will be used in the first phase of the power projects in Iraq.
The Minister added that the power plants constructed under the project will have each have a net generating capacity of 750 megawatts.
Several Turkish firms will be included in the project, and Pekcan maintained that reinsurance financing schemes have helped Turkey-based companies to gain access to similar projects abroad.
Eximbank and UKEF penned an agreement back in 2017 to support commercial cooperation and increase investment between the two countries.
Under the terms of this agreement, Eximbank and UKEF can co-finance projects in other countries.
Additionally, the UKEF provided a further £1.7 billion to UK companies that have been exporting to Turkey and to Turkish investors who have bought goods and services from the UK.