The International Finance Corporation (IFC) asked DHInfrastructure to evaluate the Global Environmental Facility (GEF)-funded Geofund Turkey Project. The Geofund Turkey Project aimed to promote private sector led geothermal energy development by: 1.) developing and piloting geothermal well productivity insurance and 2.) providing capacity building to developers to improve project quality and to financial institutions to appraise geothermal development projects. The objective of the evaluation was to: 1.) elaborate on, and synthesize the lessons learned from the project that may help improve the selection, design, and implementation of future GEF and IFC activities; and 2.) assess the potential and scope for future IFC interventions to address barriers to private sector geothermal development in Turkey and other countries.
DHInfrastructure evaluated the Geofund Turkey Project in terms of its progress toward priorities, objectives and targets; its operations and processes; and its approach to developing and piloting geothermal well productivity insurance (GWPI) in Turkey’s geothermal market. The evaluation was based on the Organization for Economic Cooperation and Development’s Development Assistance Committee (OECD/DAC) criteria of relevance, effectiveness, efficiency, impact, and sustainability, and paid particular attention to intervening factors that impacted the Project’s ability to pilot GWPI. As a final output, DHInfrastructure identified lessons learned and made recommendations for potential alternative IFC interventions to promote private sector participation in the geothermal sector in Turkey and other countries.