Fraport TAV Antalya Yatirim,Yapim ve Isletme A.S.

completed

The proposed investment is a follow-on loan of up to EUR 75m to the existing 1,25 year bridge loan to Fraport TAV Antalya Yatirim,Yapim ve Isletme A.S. (“FTA” or “the Company”) approved in February 2023, increasing IFC’s total exposure to FTA to up to EUR 225m (c. US$240m). FTA is 51% owned by TAV Airports Holdings and 49% by Fraport AG (“the Sponsors”).  The proposed IFC investment consists of a loan of up to €75 million from IFC’s own account, in addition to the existing investment of €150 million which was committed in 2023, to Fraport TAV Antalya Yatirim, Yapim ve Isletme A.S. (“FTA” or “the Company”), 51% owned by TAV Airports Holdings and 49% by Fraport AG (“the Sponsors”), to finance (i) the upfront payment of EUR1.8 billion in lease fees to the General Directorate of State Airports Authority (“DHMI’) and (ii) EUR c. 850m in CAPEX for the construction of a new terminal as part of the expansion and operation of the Antalya Airport (“AYT” or “the Airport”), which includes, among others, the expansion of the terminals, parking areas, a wastewater treatment facility, energy distribution lines, and a 4 MW solar photovoltaic plant.AYT has been in operation since 1960. It covers an area of 13 km2 and is located 3 km northeast of the Muratpasa District Centre of Antalya Province in the Mediterranean Region of Türkiye. The airport is 60 meters above sea level and surrounded by agricultural lands and settlements.The Company will be responsible for the terminal operations of AYT for a term of 25 years starting from 1st of January 2027 (the “take over date”), excluding air traffic control and airside management which will continue to be operated by DHMI. Ahead of the takeover date, on, FTA will undertake the CAPEX expansion program which entails a construction period of c. 36 months. The CAPEX expansion program covers i) airside works of additional apron space, apron for new hangar area; additional taxiways; all infrastructure works for new maintenance hangar area and catering  and hydrant system; ii) terminal works of expansion of International Terminal 2, expansion of Domestic Terminal (T4); and related car parks, Multi-story car park with roof heliport; and iii) other works including offices and lounges and general aviation terminals, DHMI housing, mosque; access roads, access gates, landscaping and new utility center, wastewater treatment facility, energy distribution lines, and solar farm with 4 MW installed capacity. The joint venture (JV) of TAV Construction and Sera Yapi (“ATS” or the “EPC contractor)) has been selected as the Engineering, Procurement and Construction (EPC) Contractor of the expansion works.An Associated Facility (AF) of the project is the new fuel farm (currently under construction) to be operated by a third party with 85,000 m3 storage capacity in the northern part of the AYT replacing the existing fuel farm with 37,000 m3 capacity located within the AYT. There are no material changes to the environmental and social (E&S) risks identified and disclosed in November 2022.