TAV Ege

repaying

The EBRD is considering providing a senior loan of up to €70 million to TAV Ege Terminal Yatırım Yapım ve İşletme A.Ş, a wholly owned subsidiary of TAV Havalimanlari Holding A.Ş, the leading airport operator in Turkey, to support the construction of a new domestic terminal at Izmir airport, and operation of this domestic terminal together with the international terminal based on an existing long-term lease agreement. The EBRD financing would foster the expansion of private sector participation in the development, management and operation of airport infrastructure in Turkey, and would contribute to supporting the growth of the regional economy. The Project comprises demolition of the existing Domestic Flights Terminal Building and its auxiliary structures and construction of a new Domestic Flights Terminal Building with its auxiliary structures including passenger boarding bridges and new car park. The Project will provide a strong demonstration effect of successful restructuring. With the construction of the new domestic terminal space, the Lessee will be able to provide both aeronautical services as well as expand its commercial practices to cover a wider scope of non-aeronautical services, such as retail activities and car park operations in the domestic terminal by applying its know-how from other airport operations. This will increase both service quality and management efficiency at Izmir Airport. Moreover, with the continuous growth of its airport operations, the transfer of skill and know-how to the Izmir Airport staff will occur with the adoption of the latest airport operations policies, passenger screening and security arrangements. The Project will build on TAV’s experience with building sustainable airport terminal buildings by enhancing best industry building sustainability and resource efficiency standards, including advanced thermal protection, use of heat pumps for heating and cooling, LED lighting, rainwater harvesting and grey water reuse, renewable technologies for heat and electricity and advanced building management systems. The energy and environmental performance of the terminal is expected to exceed the requirements of local legislation, building on a similar result for the International Terminal recently built by TAV at Izmir Airport. TAV Ege Terminal Yatırım Yapım ve İşletme A.Ş, a wholly owned subsidiary of TAV Havalimanlari Holding A.Ş, the leading airport operator in Turkey. A senior loan of up to €70 million. Up to €444.3 million. The project has been categorised B in accordance with EBRD's 2008 Environmental and Social Policy as the environmental and social impacts associated with the construction of a new domestic terminal at Izmir Adnan Menderes (IAM) airport can readily be assessed and mitigated as part of environmental and social due diligence. Environmental and social due diligence (ESDD) included a review of the Environmental and Social Impact Assessment (ESIA), Company management systems and contractor management requirements, and other project documentation for compliance with the Banks Performance Requirements (PRs). An Environmental and Social Action Plan (ESAP) has been developed to structure the Project to achieve and maintain compliance with the Bank's to address issues identified during the due diligence. TAV appointed an independent consultant to prepare an ESIA compliant with Lender requirements; even though the Izmir International Airport Expansion is exempt from the provisions of the Turkish EIA Regulation issued in Official Gazette dated July 17, 2008 and numbered 26939, as per Provisional Article No:3 of the Regulation. The ESIA takes into account the potential impacts on air, water, waste, soil quality, noise and the neighbouring settlements during construction and also operation due to the increase in activities land and air-side. A Non-Technical summary has been prepared and an Environmental and Social Management Plan defining the mitigation measures that will be applied on site. These documents are available at: http://www.adnanmenderesairport.com/tr-TR/tavhakkinda/Pages/YeniIcHatlarTerminali.aspx (Turkish) http://www.adnanmenderesairport.com/en-EN/abouttav/Pages/NewDomesticTerminal.aspx (English) ESDD concluded that during the demolition and construction of the terminal the impacts and risks will include traffic congestion, safety, noise, dust, and air emissions of construction equipment and vehicles. These will be temporary and mostly confined to the construction site and its immediate vicinity. Impacts will be minimized through good construction management practices. The Project will provide short term employment opportunities during the construction phase (potentially 1500-1800 jobs for the local labour force). A construction health and safety plan, employee training programs and site inductions that address construction safety will be implemented in line with good industry practice. Currently the site has capacity to provide accommodation for 870 workers but the project may need to provide worker accommodation to be for up over 1120 workers, so the project will be applying the EBRD guidelines for Workers’ Accommodation: Processes & Standards. The terminal development is expected to support the growth of the regional economy particularly with respect to tourism and minimize the need for airport development in new locations by making best use of the existing capacity. An Environmental and Social Action Plan (ESAP) has been developed to achieve compliance with the EBRD's PRs. The main actions in the ESAP are related to EHS management systems; contractor management; occupational health and safety; life and fire safety; noise, air and waste management; labour and working conditions (including worker accommodation and a gender action plan), a gender action plan and stakeholder engagement. The Company will provide the Bank with environmental and social reports, including updates on the implementation of the ESAP. An Independent Consultant will carry out monitoring and site visits and the Bank may also conduct monitoring visits on a risk driven basis, as required. The Bank has carried out a monitoring visit to the site and is able to confirm that good progress is being made in the implementation of the ESAP. The new terminal design incorporates many energy saving measures and the project is successfully optimising opportunities for recycling and waste minimisation. The Bank specialists visiting the project provided the company with suggestions to further improve working conditions on site.