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

Countries
  • Turkey
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
Proposed
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
Istanbul Metropolitan Municipality
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 117.03 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported EUR 437 million
Converted using 2021-08-18 exchange rate.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Sep 2, 2021


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Project 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

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

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