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A brand-new airport terminal for domestic flights will be built in Izmir, Turkey’s third largest city, with the help of the European Bank for Reconstruction and Development. The terminal will be built alongside the existing international terminal by TAV Ege, a fully owned subsidiary of TAV Airports that won the lease to operate the entire airport until the end of 2032.
The biggest share of the funding for this major infrastructure project is being arranged by the EBRD. The €145 million financing package will consist of an A-loan (up to €70 million for the Bank’s own account) and a B-loan (up to €75 million syndicated to commercial banks, UniCredit and Siemens Bank). The rest of an overall €250 million debt facility to finance the project is being provided by Denizbank (€65 million) and the Black Sea Trade and Development Bank (€40 million).
Izmir, with a population of 3.3 million, employs about a tenth of Turkey’s workforce. The new passenger terminal will support growing traffic, both domestic and international.
The new domestic terminal is designed to have a total area of 185.000m² with eight passenger boarding bridges and planned to be connected with the International Terminal by a bridge system.
“Izmir Airport's domestic terminal, incorporating the latest technology in its design, will excel in the level of service it provides and become a key reference point in the country for energy efficiency in the built environment, - said Sue Barrett, the EBRD Director for Transport. - Supporting this investment is very much in line with the Bank's aim to promote sustainable transport across the region.”
TAV Airports is one of the world’s largest airport concession companies with operations at 12 airports in 6 countries, including the Istanbul’s Ataturk airport. The company, together with its subsidiaries, provided services to approximately 451 thousand flights and 53 million passengers in 2011.
“The EBRD strategy for Turkey – where the government has initiated substantial investment programs for investment in the transport sector – gives high priority to supporting private sector participation in infrastructure development,” said Mike Davey, EBRD Director for Turkey. “We will continue to support other landmark projects that will allow Turkey to meet fast-growing demand for travel, be it by land, by water or by air”.
As part of EBRD participation in the project, the Bank and TAV Ege have agreed develop and implement a gender action plan which is expected to identify targeted opportunities and practical measures to increase female access and participation in the project and supporting businesses and services.
Since the beginning of its operations in Turkey, the EBRD has invested approximately €2.5 billion in about 50 projects.