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").
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.
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.
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
Total Project Cost
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
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.
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
+90 (224) 270 25 47
Sirameseler Mahallesi Avrupa Konseyi Bulvari No: 6/3 D Blok 16190 Osmangazi / Bursa - Turkey
PSD last updated
26 Jul 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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).
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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.