Bursa Water Project

Location:

Turkey

Project number:

53619

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

14 Dec 2022

Status:

Concept Reviewed

PSD disclosed:

26 Jul 2022

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."

Project Description

A senior unsecured loan of up to EUR 72.5 million to Bursa Water and Sewage Administration ("BUSKI" or the "Company") to finance the construction of a 59-km long water transmission line, 3 drinking water tanks and engineering structures with a total volume of 16,000 m3 and a water treatment plant (WTP) with a capacity of 300,000 m3/day (the "Project").

Project Objectives

The Project will secure 2.2 million residents' access to clean water until 2050, it will also contribute to a more sustainable and energy efficient water resource mix by substituting the extensive use of underground well water sources with surface water, which is expected to reduce energy consumption.

Transition Impact

ETI score: 60

The Project will primarily help to promote the Green transition quality by improving reliability and quality of critical drinking water services to a population of 2.2 million. The Project will improve energy efficiency (and reduce energy intensity) and lead to reduction of CO2 and GHG emissions by replacing currently pumped groundwater sources with surface water sources fed by gravity. The Project will also help to conserve remaining groundwater supplies and preserve its quality by switching to a more sustainable and climate resilient surface water resource. From a physical resilience perspective, it reduces the risk of irreversible aquifer depletion through over abstraction for those users remaining dependent upon these water resources.

The Project secondarily supports the Resilient transition quality through institutional capacity strengthening in water resource management. As part of the technical due diligence, the Bank will additionally explore with the Company the strength of its long-range Integrated Water Resource Management Planning (IWRMP) which is an important tool to help utilities anticipate future supply and demand side interventions over the next fifty years that take account of climate impacts, growth and other factors, informing long-term investment plans required to assure future water security.

Client Information

BURSA WATER AND SEWAGE ADMINISTRATION

Bursa Water and Sewage Administration, an affiliated entity of Bursa Metropolitan Municipality, is a public utility with 1.4 million subscribers, covering a population of 3.1m and a service area of c. 11,000 km2.

EBRD Finance Summary

EUR 72,500,000.00

Total Project Cost

EUR 145,000,000.00

Additionality

The Bank's additionality derives from (i) financing structure given the limited available funding sources in the market from commercial sources on reasonable terms and conditions, (ii) helping projects and clients achieve higher standards as well as knowledge, innovation and capacity building, including the climate risk mitigation and higher environmental standards.

The EBRD will provide expertise, innovation, knowledge and capabilities that are material to the timely realization of the project's objectives.

Environmental and Social Summary

Categorised B (2019 ESP) and Low-Medium Risk. Key Environmental and Social (E&S) risks and impacts associated with the construction long water transmission line and a WTP will be mainly construction related particularly health and safety of workers and affected communities; access restrictions; noise, dust and vibration, potential economic displacement due to land acquisition, labour and gender based violence and harassment, affordability, contractor and traffic management, stakeholder engagement, grievance mechanism and emergency response including Covid-19. Impacts of water abstraction on the environment and downstream users will also be assessed. An environmental and social due diligence will be undertaken by TC-funded consultants and will include a review of the Company's environmental and social management system and capabilities to implement the Project in line with the PRs, compliance with EU standards for drinking water quality and national legislation, review of any associated facilities, sludge management, and project's ability to properly manage E&S risks during implementation and operation. A Non-Technical Summary and Stakeholder Engagement Plan will be disclosed. The project is considered Paris-aligned for climate mitigation.

Technical Cooperation and Grant Financing

Pre-signing:

TC 1 - Technical, Financial, Environmental, and Social Due Diligence: The estimated cost of the assignment is EUR 350,000 and proposed to be financed by Clean Technology Fund (CTF) or the EBRD Shareholder Special Fund ("SSF").

TC 2 - Advance Procurement Support: Consultancy support to the Company for the contracts proposed for financing by the EBRD, including (i) review of the design documents and technical specifications, (ii) preparation of the tender documentation and (iii) management of procurement process up to the contract/s award, to ensure compliance with the EBRD Procurement Policy and Rules ("PP&Rs"). The estimated cost of the assignment is EUR 75,000 and proposed to be financed by CTF or the EBRD SSF.

Post-signing:

TC 3 - Monitoring Support: Project Monitoring Services to the Company to include support with monitoring of the project implementation and with the reporting requirements, including Environmental and Social Action Plan ("ESAP"). The estimated cost of the assignment is EUR 75,000 and proposed to be financed by CTF or the EBRD SSF.

Company Contact Information

Nigar Etik
netik@buski.gov.tr
+90 (224) 270 25 47
www.buski.gov.tr
Sirameseler Mahallesi Avrupa Konseyi Bulvari No: 6/3 D Blok 16190 Osmangazi / Bursa - Turkey

PSD last updated

26 Jul 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

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.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

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).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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