Turkey: Construction and Operation of a Waste Incineration and Energy Generation Plant (AIIB-000495)

Countries
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Specific Location
Istanbul
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Istanbul Metropolitan Municipality
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 117.03 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 100 million
Converted using 2021-08-18 exchange rate.
Project Cost (USD)
$ 511.41 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 437 million
Converted using 2021-08-18 exchange rate.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS May 9, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank's website, the project provides funding to Istanbul Metropolitan Municipality to finance the construction of a Waste Incineration and Power Generation facility. The Waste-to-Energy facility is located about 20 km north of Istanbul in the Eyup district. It would be the largest facility in Europe with an annual capacity of 1 million tons (about 15% of Istanbul’s waste), generating 630 GWh of net electricity sufficient for 400,000 households.

The Engineering, Procurement and Construction contract was awarded to Hitachi Zosen Inova – Makyol Insaat Sanayi Turizm ve Ticaret AS Joint Venture (HZI-Makyol). The contractor will also operate the Waste-to-Energy facility for one year before transferring to ISTAC. As of April 2021, 90%+ of construction works have been completed.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project is being co-financed with the Black Sea Trade and Development Bank (BSTDB), together with the other co-financiers BNP Paribas (BNPP) and Societe Generale (SG) and Swiss Export Risk Versicherung (SERV).


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

PROJECT CONTACT INFORMATION

Borrower

Rezzan Neslihan Vural

Directorate of Finance

neslihan.vural@ibb.gov.tr

AIIB 

Edwin Yuen

Senior Private Sector Operations Specialist

edwin.yuen@aiib.org 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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How it works