IZSU Support

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The proposed investment is a loan of up to US$ 34 million (equivalent Turkish Lira) to the Izmir Water and Sewerage Administration (“Izsu” or the “Company”) of the Izmir Metropolitan Municipality (“IMM”), to support its sewage and rainwater network and potable water investments under construction or planned for the 2019-2022 period (the “Project”) including construction of a stormwater network and sewerage separation infrastructure in Urla, Kemalpasa, Odemis, Karaburun and Konak districts; a greenfield potable water treatment plant (PWTP) in Foca district; and renewal of main water-supply lines in Bornova district.IMM and Izsu are existing clients and partners of IFC through previous investments: Izmir Muni-Traffic Management System and Emergency Vehicle Purchases (project #31733), Izmir Tramway (project #34306); Izmir Metro Railcars (project #35012); Izsu Wastewater (project #32078); and Izsu Sewerage (project #36080). The project consists of  eight individual projects including construction and operation of i) wastewater and stormwater collection networks in the Urla district, Gulbahce neighborhood (58.8 km sewerage lines, 3.2 km stormwater lines and 13 sewage pumping stations and rehabilitation of Kocadag, Gullu and Cinlipinar creeks - 1,984 m in total of a U shaped reinforced concrete box culvert); in Karaburun district, Mordogan neighborhood (108.7 km sewerage lines, 9.1 km stormwater lines and eight sewage pumping stations); in Kemalpasa district Ulucak, Kuyucak, Damlacik and Ansizca neighborhoods (Kemalpasa I – 48.7 km sewerage lines, 7.6 km stormwater lines and four sewerage pumping stations) and Bagyurdu, Yigitler, Oren, Armutlu, Yukarikizilca, Asagikizilca, Ornekkoy and Cinilikoy neighborhoods (Kemalpasa II – 48 km sewerage lines, 5.2 km stormwater lines and ten sewerage pumping stations); in Odemis district central neighborhoods (14 km sewerage lines); in Konak district Gultepe area (14 km stormwater lines); ii) main water-supply lines in Bornova and Pinarpasi; and iii) a greenfield PWTP with a capacity of 30,000 m3/day for the treatment of water from 19 wells located in the Foca, Yeni Foca and Musabey area.For the construction of the projects, Izsu signed contracts with several contractors in 2019 and 2020, including: TUSEV Construction Automotive Industry and Commerce Co. Ltd. in March 2019 for the Urla Gulbahce project; with Guven Construction Ltd. in August 2019 for the Karaburun Mordogan project; with ALKAN Construction & TUSEV Construction Joint Venture in October 2019 for the Kemalpasa I project; with Ekip Engineering Construction and Delta Construction Joint Venture in April 2020 for the Kemalpasa II project; with Cengiz Tas in September 2020 for the Odemis project; with Guven Construction Ltd. in January 2021 for the Konak project. Izsu signed a contract with Gemi Group & SRC Group Construction Joint Venture in December 2019 for the Bornova potable water transmission line project; and with Gemi Group Construction Contracting Industry and Commerce Co. Ltd. in March 2020 for the Foca PWTP project. The construction works of the Urla Gulbahce wastewater and stormwater networks and the Bornova potable water main lines projects were completed in February 2021. The overall completion rates of construction works of other projects as of February 2021 were 98% for the Kemalpasa I project, 95% for the Karaburun Mordogan project, 48% for the Kemalpasa II project, 27% and 24% for the Odemis wastewater main collectors and network and Foca PWTP projects respectively. The construction works of Konak Gultepe stormwater network started in January 2021. The project components which are under construction and/or their associated facilities as explained below are expected to be operational by 2022.Urla Gulbahce, Odemis and Kemalpasa II wastewater networks will be connected to three existing advanced biological wastewater treatment plants (WWTPs) in respective districts. Two greenfield advanced biological WWTPs, which are associated facilities as per PS1, with 11,232 m3/day and 12,960 m3/day capacity will be constructed for the Karaburun Mordogan and Kemalpasa II wastewater networks, respectively. Izsu completed the tender process for the construction works of these facilities and construction contracts were signed in October 2020 for the Mordogan WWTP in Karaburun and in September 2020 for the Ulucak WWTP in Kemalpasa district. A 500 m offshore discharge pipe will be installed for the Karaburun Mordogan WWTP to discharge the treated water to the sea, while Kemalpasa WWTP will be discharging the treated water to Nif Cayi which is a branch of Gediz River. The wastewater and stormwater collection lines in the Urla, Karaburun, Kemalpasa (I and II), Konak and Odemis districts include (i) installation or renewal of wastewater and stormwater collection, drain and trunk lines; (ii) rehabilitation of natural stormwater creeks; and (iii) construction of pumping stations alongside the wastewater collection or sewer lines. These developments will be done in settlement areas and the pipelines will be installed mostly along the existing roads. Only the sewer line for Kemalpasa II project required establishment of rights of way on privately owned 79,604 m2 of land in 295 parcels and the acquisition of 381 m2 of land for the construction of a pumping/transfer station.The water main line renewal project in Bornova district is to replace the old lines with new and larger ductile cast iron pipes between Bornova, Pinarbasi and the Gordes Dam. The existing pipes will be decommissioned and abandoned in-place under the ground. The new main lines will be installed along existing roads, which will not require any new right of way establishment. The greenfield PWTP will be located on a 5.5 ha of undeveloped land acquired from Foca municipality. The project will connect two existing concrete water storage tanks in the Foca and Yeni Foca area to the PWTP. As indicated, water will be extracted from 19 existing wells.Izsu has the overall responsibility of operating the project facilities including monitoring of the old lines which have been abandoned in-place under the ground.Izsu, with these projects, aims to ensure sustained access and quality of services to Izsu’s more than one million customers and support the city’s long-term water and wastewater infrastructure resilience with the environmental benefits of preventing wastewater pollution and treating drinking water.