Mersin Wastewater Project

Project Description

The EBRD is considering extending a loan of up to €20 million to the Mersin Water and Sewerage Administration (“Meski”) to finance the construction of the greenfield Mezitli Wastewater Treatment Plant (the “Project”).  The loan will be guaranteed by the City of Mersin (the “City”).

Transition Impact

The Project will support environmental improvements and continued commercialisation of Meski. It will also have the potential demonstration effect of a direct loan to a Turkish water utility by an international financial institution without a sovereign guarantee.

Performance improvements and further commercialisation of Meski are expected via a public service contract which will bring greater transparency on financial management, investment planning, unaccounted-for water, organisational efficiency, and customer relations. The preparation of a draft public service contract and recommendations for corporate restructuring to help achieve the objectives of such a contract will be supported by a TC.

Furthermore, the Project will enable the City, which is located directly on the Mediterranean Sea, to treat all municipal wastewater in accordance with EU and Turkish standards.  Encouraging investment in new technology (e.g. biogas capture for power and heat co-generation) that exceeds national requirements is also intended to have a demonstration effect.

The Client

Meski is the water and wastewater utility owned by and serving the City of Mersin. It will be the borrower of the proposed loan and the owner and operator of the Mezitli Wastewater Treatment Plant.

EBRD Finance

Up to €20 million for the construction of the Mezitli Wastewater Treatment Plant.

Project Cost

The total project cost is estimated at approximately €25 million including taxes, duties and technical co-operation support.

Environmental Impact

The Project has been categorised B in accordance with the EBRD Environmental and Social Policy, following an initial environmental and social examination (IESE). The IESE, including a site visit, conducted by independent consultants showed that the potential environmental and social (E&S) impacts of construction/rehabilitation of wastewater treatment plants and extension and rehabilitation of sewerage networks are site-specific, readily identified and addressed through adequate mitigation measures. No environmental or social sensitivities were identified on or nearby the project site. The design capacity of the new wastewater treatment plant (WWTP) planned to be constructed under the project does not exceed the 150,000 p.e. threshold for A-category projects in EBRD Environmental and Social Policy, Appendix 1.

In accordance with the EBRD’s requirements for B-category projects, independent consultants carried out Environmental and Social Due Diligence (ESDD) consisting of a review of the Company's E&S management systems, assessment of the E&S performance of the existing operations and an E&S Analysis of the proposed project. The ESDD showed that the  Mezitli WWTP has been designed to meet the relevant EU standards and that its construction and operation will significantly reduce wastewater discharges and improve the quality of aquatic environment. In addition, public health risks associated with discharges of untreated wastewater will be minimised.

The ESDD concluded that the construction works will cause some temporary and localised impacts, including noise, air emissions (especially dust) and construction waste. The construction works will be managed in accordance with the local environmental legislation and good construction practices, and therefore, these impacts are expected to be negligible. A traffic Management Plan will be prepared for the areas where construction activities are carried out, particularly for the activities related to installation of sewerage lines along the roads and streets. In order to minimise the impact, local residents will be informed about the traffic flow. During the operation, the WWTP and sludge treatment may release odorous gases, which will be minimised with a biofilter system. Furthermore, sludge transport routes will be determined so as to minimise nuisance to local people.

An Environmental and Social Action Plan (ESAP) has been developed to mitigate the identified E&S issues and impacts during preparation, construction and operation of the project, and to bring the Company's operations into compliance with the EBRD's PRs. The main actions in the ESAP requires the Company to develop and implement: an E&S Management System for MESKI operations covering both new and the existing facilities; Human Resource policies and procedures including a formal grievance mechanism for workers; the Stakeholder Engagement Plan; a rehabilitation and replacement plan for the distribution network in order to supply clean water to the community and minimize public health risk due to infiltration; and a Contractor Management Plan. The Company is also required to include in the tender documents and contracts conditions relating to labour and working conditions as well as requirements for the contractors to comply with the Company’s EHS Management System and to develop and implement specific Environmental Management Plans for the construction activities.

The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP. The Bank will commission a completion audit and may also conduct monitoring visits, as required.

Technical Cooperation

Full financial, technical, environmental and social due diligence is being carried out for the proposed project.  This includes an audit and restatement of Meski’s accounts and a full technical, environmental and social review. This technical co-operation was funded from the EBRD’s internal resources.

In the post signing stage two technical co-operation assignments are foreseen:

Project Implementation Support Services

A team of international experts to provide comprehensive support for engineering, design, procurement, and supervision of works.

City and Corporate Advisory Services

This will include assistance to the City and Meski to 

(i) update the Business Plan to help improve the financial and operational performance of Meski; 

(ii) help prepare key performance indicators for Meski; 

(iii) assist the City and Meski to prepare a Public Service Contract; 

(iv) improve Mersin’s financial and capital investment planning capacity; and 

(v) prepare and implement a Stakeholder Participation Programme to promote awareness of the objectives of the proposed Project.

Procurement or tendering opportunities

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.

Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.

Last updated 16 April 2012