Translated version of this PSD: Turkish
A senior loan of up to USD 17.5 million in favour of Ceyport Tekirdag Uluslararasi Liman Isletmeciligi A.S. (the "Borrower"), a limited liability company incorporated in Turkey. The Bank's investment will be used to finance the acquisition of the operation rights of Tekirdag Port (the "Port") in Turkey under a 36-year concession from the Turkish Privatisation Authority and modernisation/expansion investments in the Port.
The Port has dry bulk/general cargo, liquid bulk, container and Ro-Ro handling capacities serving industrial and agricultural production and trading in the Marmara region. The Project is expected to result in improved operational efficiency of the Port through capacity expansion and optimisation, which in turn would positively impact on the load factors of the goods transported, enhance modal shift and direct a larger share of the cargo commodities from roads towards railway and shipping lines.
The Project involves the Port's privatisation and implementation of the investment plan for modernisation and capacity expansion.
The Project's transition impact stems from the following key areas:
1. The Project facilitates the privatisation of Tekirdag Port by financing the acquisition of operation rights and the investments to be made for the Port's modernisation and expansion under a 36-year concession awarded to the Borrower.
2. The Project facilitates improvement and increase in the infrastructure capacity in the region through the Port's modernisation and expansion. Following the implementation of the Project, the Port's traffic is expected to increase from 1.6 million tons in 2017 to 1.9 million tons in 2022 for general and dry bulk cargo mainly due to improvement in the Port's infrastructure and from 150k to 260k tons for liquid cargo for the same period mainly due to improvement in storage.
CEYPORT TEKIRDAG ULUSLARARASI LIMAN ISLETMECILIGI AS
Tekirdag A.S. is a Turkish-based special purpose company that was awarded the operation rights for the Port of Tekirdag for 36 years in December 2018, and it is 51 per cent owned by Ceynak Lojistik ve Ticaret A.S., 25 per cent owned by Samsunport-Samsun Uluslararasi Liman Isletmeciligi A.S. and 24 per cent by private individuals Ali Avci, Mehmet Berzan Avci and Lerzan Avci Lulecioglu.
EBRD Finance Summary
The EBRD is planning to arrange a loan of up to USD 17.5 million. ICBC Turkey Bank A.S. is providing parallel financing.
Total Project Cost
The total project cost is estimated at circa USD 127.8 million.
Environmental and Social Summary
Categorised B (2014 ESP). The environmental and social risks and impacts associated with privatisation and expansion of a brownfield port are readily identified and can be mitigated through the implementation of a targeted Environmental and Social Action Plan. The Environmental and Social Due Diligence (ESDD) undertaken by an independent consultant and comprising of site visit and audit of the current activities as well as review of the proposed CAPEX confirmed that the port operates in line with national environmental and social regulations, however its current environmental, land and operational permits require renewal and further improvements are required to achieve compliance with the Bank's Performance Requirements (PRs).
Labour management and performance requires improvements, including implementation of the formal human resources policies and management systems consistent with the requirements of the EBRD's Environmental and Social Policy and the national law. Particular focus should be placed on the worker organisations, third-party workers and grievance mechanism.
Health and safety (H&S) aspects of the Port's activities are managed by a certified expert and external consultancy. In order to achieve full compliance with EBRD's PRs and national regulations the overall H&S capacity should be strengthened via appointment of a dedicated H&S manager, implementation of the H&S management structure, relevant risk assessment, action plans, audit and monitoring programs.
Main potential E&S impacts from CAPEX development are associated with legacy issues, such as soil contamination, as well as environmental and safety issues arising from the construction activities, sea filling/dredging, noise and dust, waste and hazardous materials handling, social and labour aspects. The Client will be required to perform EIA and receive regulatory authorisations for individual subprojects, which are subject to EIA under national legislation, prior to works commencement.
All the identified gaps were addressed by the Environmental and Social Action Plan (ESAP), which focuses on the implementation of the corporate Environmental, Health and Safety and Social Management systems, creation of corporate E&S capacity, E&S risk assessment, supply chain and contractor management, waste and hazardous materials management (particularly asbestos containing materials), traffic management, stakeholder engagement and grievance mechanisms, improvement of the labour practices, and implementation of specific mitigation measures recommended by the national EIA. ESAP was agreed with the Client, and its implementation will be monitored by the Bank through review of annual E&S reports and site visits as required.
Company Contact Information
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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