A senior loan of up to USD 8.5 million in favour of Altintel Liman ve Terminal Isletmeleri A.S. ("Altintel Port", the "Borrower", or the "Port"), a liquid bulk port located in Kocaeli Province in the Marmara region of Turkey. The Bank's investment will be used to finance the Port's expansion through construction and installation of 18 chemical storage tanks and related infrastructure with a modern sensor system (the "Project"). The expansion results in an increase of the Port's total liquid bulk capacity by 23,164 m3 to 105,600 m3. The new facilities are not associated with fossil fuels and are used for the handling and storage of petrochemicals and base oil, which are raw materials for consumer goods, paint and coating, pharmaceuticals, agriculture, construction, electronics and automotive industries.
The Project employs a high level of automation and digitalisation technologies through a modern sensor system, which enhance: (i) energy, cost savings, and GHG reduction; (ii) safety; and (iii) business operations. The Project also includes advanced systems and good use of smart technology in: (i) tank stock management; (ii) flow control to/from the jetty; (iii) truck loading bays; (iv) drumming facility; and (v) pumping system. Therefore, the Project is a good example in Turkey of a mid-size business adopting technologies that go beyond the regulatory requirements and country practice.
The Project is expected to contribute positively to Altintel Port's decarbonisation by implementing the latest technological and operational improvements. The Project is aligned with Paris Agreement on both mitigation and adaptation. The GET share of the Project is 17%, implying GET-eligible ABI of USD 1.445 million. The Project contributes to emissions reduction due to the fuel shift from fuel oil to natural gas, using electric equipment, inverter pumps and LED lighting. By phasing out fuel oil consumption in the Port's heating system, the Project will also result in reduction of pollutant emissions.
The Project's overall objective is to achieve the Port's expansion maintaining the highest level of environmental and safety standards, strong operational and financial performance and GHG savings.
ETI score: 64
The Project supports private sector development and market economy. Specifically, the Project's transition impact stems from the following key areas:
- Competitive: The Project results in enhancement of the Port's operational efficiency resulting in at least 16% opex ratio improvement. The cost savings are driven primarily by: (i) economy of scale due to lower average expenses per additional capacity unit; (ii) installation of new gas fuelled boilers which are more efficient than operating oil-based boilers; (iii) replacement of diesel forklifts by electric forklifts; (iv) installation of LED lighting fixtures; (v) implementation of a smart sensor system.
- Integrated: The Project supports quality enhancements to the existing facilities and capacity expansion of the Port, facilitating material quality improvement of the current infrastructure and improved services to a wider client base in the catchment area.
ALTINTEL LIMAN VE TERMINAL ISLETMELERIS
Altintel Liman ve Terminal Isletmeleri A.S. is a liquid bulk port located in Kocaeli Province in the Marmara region of Turkey. It is a subsidiary of the Arkem Kimya Sanayi ve Ticaret A.S. (the "Sponsor" or the "Guarantor"), a chemical distributor with logistics and production facilities in Turkey and trade subsidiaries in the Netherlands, Germany, Bulgaria, China and USA owned and managed by Kokuludag Family.
EBRD Finance Summary
Up to USD 8.5 million (EUR 7.4 million equivalent) senior loan.
Total Project Cost
The EBRD loan is co-financed by USD 3 million equity financing from internally generated cash flows.
The key sources of additionally are related to the financing structure, standard settings and capacity building. The EBRD provides long-term financing, which is aligned with the Project's needs and is not readily available on the market. Altintel Port seeks and makes use of EBRD expertise on higher: (i) environmental and safety standards; (ii) energy and resource efficiency and climate resilience; (iii) financial standards, including arrangement of audit report in accordance with IFRS for the Borrower, and (iv) gender equality standards. The EBRD also provides expertise and knowledge that are material to the timely realisation of the Project's objectives, including support to strengthen the capacity of the client.
Environmental and Social Summary
Categorised B (ESP 2019). The loan will be used for the Port's expansion through construction, installation and operation of 18 additional petrochemicals storage tanks and related infrastructure with modern sensor systems, contributing to GHG emission reduction. The environmental and social risks and impacts associated with the Project are readily identified and can be mitigated through implementation of a targeted Environmental and Social Action Plan (ESAP) prepared for the Project.
Environmental and Social Due Diligence (ESDD), inclusive of climate risk assessment and carbon lock-in risk assessment confirmed that the storage tanks are not associated with fossil fuels use and the Project is aligned with Paris Agreement on both mitigation and adaptation.
ESDD undertaken by an independent consultant, comprising of a site visit, audit of the current activities and E&S management capacity, workers interviews, as well as review of the proposed CAPEX, confirmed that the port operates in line with national environmental and social regulations and has the institutional capacity to deliver the project in line with Bank's Performance Requirements (PRs). The key risks are related to construction H&S, hazardous materials management, social and labour aspects, Gender-Based Violations and Harassment (GBVH) and air emissions.
The Project, which plans to add 18 chemical storage tanks (23,164 m3) to the existing port, has an EIA, which has been approved and obtained positive decision on 14.08.2020. The Port expansion will require updated/renewed construction and usage permits, which the Port will have to obtain prior to commencement of the construction works.
Altintel Port management has established a formal Quality Health, Safety, and Environmental (QHSE) management system in line with ISO 14001 Environmental Management System, ISO 45001 Occupational Health and Safety Management System, and ISO 9001 Quality Management System. The Port has established an Environmental Policy and an Occupational Health and Safety Policy, which are displayed on the corporate website.
The contractor for the construction phase of the new tank farm area is yet to be selected. The tendering documents, as well as contracts of contractors, will be required to include additional commitments to relevant social standards and issues via the ESAP.
Altintel Port manage labour and working conditions according to Turkish Labour Law. Employees' working rights are defined in the "Personnel Regulation" and each employee is given a copy upon entry to work. The interviewed employees stated that the practice of working overtime is carried out voluntarily. There is a documented worker representative procedure in place. The ESAP will require the Port to establish a non-discrimination GBVH policy; revision of the existing Personnel Regulation for alignment with PR2, as well as the development of a Code of Conduct.
The terminal is Upper Tier in relation to SEVESO III Directive. Altintel Port has undertaken a Hazard Identification and documented the major accident hazard processes. The Port's Seveso III and explosion protection documents were prepared in 2019 and are currently being revised. The terminal had a SEVESO III and OHS audit from the Ministry of Labour and Social Security in April 2021; implementation of the recommendations from this audit is captured in the ESAP. The emergency management plans are reviewed annually. The Port also has a Health and Safety Monitoring Program, which includes periodical health surveillance of Port workers by the workplace doctor.
There is no land acquisition planned for the Project and the ESDD did not identify any economic displacement due to the Project. The land is currently not used and is registered as a degraded forest area; it is leased from the Forestry Authority. The closest settlement to the project site is approximately 200 m away.
The EIA report did not identify any cultural heritage and the authorities did not specify any culturally sensitive area where the Project development will take place. There is currently no separate grievance management system for stakeholders and affected communities; this is required in the ESAP. A Stakeholder Engagement Plan was prepared for the Project.
All the identified gaps were addressed by the Environmental and Social Action Plan, which focuses on: further improvements of the corporate Environmental, Health and Safety and Social Management systems, E&S risk assessment, additional/renewed permits for the port expansion and operations, contractor management, gender equality and GBVH management, waste and hazardous materials managements, pollutants and GHG monitoring, traffic management, stakeholder engagement and grievance mechanisms, improvement of the labour practices, and implementation of specific mitigation measures recommended by the national EIA. The ESAP is agreed with the Borrower. The Bank will monitor the Project through the review of annual E&S reports and site visits as required.
Technical Cooperation and Grant Financing
The Bank has provided technical cooperation support for: (i) commercial due diligence: EUR 10,000, financed by the EBRD Shareholder Special Fund via the Sustainable Transport Advisory Programme; and (ii) assessment of GET and Paris Agreement Alignment: EUR 9,900, financed by the EBRD Shareholder Special Fund.
Company Contact Information
+90 262 648 23 00
+90 262 754 94 78
Dilovasi Organize Sanayi Bolgesi 1.Kisim, Tuna Caddesi No:12 Dilovasi, Kocaeli
PSD last updated
08 Oct 2021
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Environmental and Social Policy (ESP)
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The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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