Sisecam Glass Recycling and Energy Efficiency

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 48154

Status Complete

Location

Türkiye

Business Sector

Manufacturing and Services

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 48154

Status Complete

Location

Türkiye

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

22 Jun 2016

Disclosure date

05 Aug 2016

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Turkish

Project Description

The EBRD signed EUR 42 million long-term loan to Turkiye Sise ve Cam Fabrikalari A.S. (Sisecam), the leading glass producer in Turkey to finance glass recycling and energy efficiency investments in Turkey. EUR 2 million of the loan will be extended under the EBRD's Near-Zero Waste programme, which finances waste minimisation projects in Turkey with support from the Clean Technology Fund.

Project Objectives

The project will enable the improvement of the glass recycling infrastructure in Turkey. Furthermore, it will support resource efficiency improvements across Sisecam's group of companies.

Transition Impact

The project represents a good opportunity for the Bank to achieve a strong transition impact in Turkey, particularly through (i) market expansion via improving the glass recycling market infrastructure and indirectly financing the cullet suppliers, and (i) setting standards for energy efficiency and better environmental performance in the manufacturing sector in Turkey.

Client Information

TURKIYE SISE VE CAM FABRIKALARI A.S

Sisecam, which is incorporated in Turkey and operates in 13 countries, is one of the largest glass producers in the world. The company is active in all key areas of glassmaking (flat glass, glassware and glass packaging) as well as production of glass chemicals such as soda ash and chromium products. Turkiye Is Bankasi A.S. ("Isbank") owns 74 per cent controlling stake in Sisecam, while the remaining 26 per cent is free floating on the Borsa Istanbul.

EBRD Finance Summary

EUR 40,000,000.00

An additional EUR 2 million will be provided by the Clean Technology Fund, a funding window of the Climate Investment Funds.

Total Project Cost

EUR 48,000,000.00

Environmental and Social Summary

Category B (ESP 2014). An Environmental and Social Due Diligence (ESDD) was undertaken for the project financed by the Bank as well as a review of corporate management. The Bank has existing financing with the company in the container and float glass sector, and to date the company has fully
implemented best practices and complied with the agreed requirements.

The ESDD has confirmed that the current project is structured to comply with the Bank's performance requirements (PRs) and the company has the institutional capacity to implement the Bank's PRs and is in compliance with the existing requirements. The ESDD process has also confirmed that the plants are well managed with a good Environmental, Health and Safety (EHS) management system certified to ISO 14001 and OHSAS 18001 standards. The sites are compliant with national legislation. The group has issued Global Reporting Initiative G4 annual report for 2014 and is planning to publish 2015 report in September 2016. The 2014 Corporate Social Responsibility Report contains much of the basic information included with the original corporate stakeholder engagement plan.

Overall, the Company is making good progress in terms of implementing the existing ESAP and a project specific ESAP has been developed and agreed with the Company.

The ESDD proved that the Sisecam Management and R&D teams dedicate considerable time to energy efficiency improvements at all facilities. These improvements are considered to go beyond EU BREF recommendations. New facilities built within the EU would be designed to comply with the IED (e.g. the new facility in Bulgaria); however, general compliance with IED ELVs in the existing facilities in Turkey needs to be improved. The Company has agreed to assess IED and BAT requirements and develop a road map for future implementation. The Bank will monitor this and work with the Company to develop a programme to ensure long term compliance with the existing ESAP and EU requirements.

The Bank undertook a labour review as part of the due diligence as there have been a number of labour disputes. Overall, the ESDD confirmed that labour relations and labour standards within Sisecam Group are in compliant with the national laws and PR 2 requirements. Further improvements have been included in an updated ESAP to standardise the HSE, social/labour practices in supply chains and the Collective Bargaining Agreement negotiations with the Workers' organisation in line with the legislations.

The Bank will monitor the implementation of the Project and ESAP including in labour related issues.

Technical Cooperation

Technical cooperation (TC) funds to support this operation, under Near Zero Waste Programme, have been provided by the EU Instrument for Pre-accession Assistance (IPA) 2013 Energy Allocation for Turkey. Using these funds, the Bank engaged consultants for providing assistance in the implementation and project management phases of the glass recycling investment.

Additionally, up to EUR 2 million in non-TC funds will be provided from the Clean Technology Fund under Near Zero Waste Programme, to address first-mover externalities and other transaction costs associated with the innovative recycling and supply-chain financing approach for the glass recycling investment.

Company Contact Information

Gorkem Elverici
gelverici@sisecam.com
+902123505050
www.sisecam.com
Türkiye #i#e ve Cam Fabrikalar# A.#. ## Kuleleri, Kule 3, Kat: 23 34330 4. Levent, Istanbul TURKEY

Transition impact

ETI Score:80

PSD last updated

14 Nov 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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