Turkey: Green Investments in Buildings

Location:

Turkey

Project number:

51041

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

02 Sep 2020

Status:

Passed Final Review, Pending Approval

PSD disclosed:

11 Jun 2020

Project Description

USD 50 million sovereign loan to the Republic of Turkey, for the benefit of the Ministry of National Education for the purpose of financing energy efficiency investments in public school buildings.

Project Objectives

The operation will enable sovereign financing of energy efficiency upgrades in 200-250 public school buildings of Turkey. Energy savings of up to 30 per cent are expected to be achieved. 

The Ministry of National Education owns 30 per cent of the total public building stock in Turkey. The project will not only help Turkey achieve energy efficiency targets, but also will help improve the quality of public education services and create synergies for students and young people to develop green skills through work-based training opportunities that will accompany the envisaged investment programme. 

The investments will be realised over a 3-year implementation period and will involve multiple contracts designed to address energy efficiency and associated structural strengthening works in school buildings.

Transition Impact

ETI score: 61

The transition impact of the project is derived from the "Green" quality as the proceeds will be 100 per cent GET eligible. The project also contributes to the "Inclusive" quality by introducing a work-based training programme for young people to help them build "green skills" in cooperation with local vocational schools and/or universities.

Client Information

TURKEY SOVEREIGN

The Ministry of National Education will be the beneficiary of this sovereign loan and is responsible for the execution of the investment programme improve the energy efficiency of up to 250 public school buildings.

EBRD Finance Summary

USD 50,000,000.00

Total Project Cost

USD 63,000,000.00

Additionality

The additionality of the Bank is derived by the long-term nature of the financing, which is not available from commercial banks. The EBRD financing is needed to close the funding gap. The Bank's involvement is also additional by helping the project and the client achieve higher standards through its country, sector and energy efficiency technology expertise and inclusive approach.

 

Environmental and Social Summary

Categorised B (2014 ESP). The Project is expected to result in environmental and social (E&S) benefits including reduced energy use and associated greenhouse gas emissions reductions, improved building safety and structure integrity and building comfort. The implementation and the construction, however, has the potential to result in some E&S risk and impacts.

E&S due diligence was conducted by a consultant and included a visit to a sample of schools. The due diligence included the development of an environmental and social management plan (ESMP), which will be used to address project E&S risks and impacts during construction works as well as an environmental and social action plan (ESAP), which will be agreed with the borrower and the Ministry of National Education prior to the Board approval to structure the project to meet the Bank's performance requirements.

Project investments include thermal insulation improvements, upgrades to heating and cooling systems, new energy efficient equipment, energy management system, renewable energy systems as well as structural enhancements. Typical E&S risks and impacts associated with these investments include worker and building user health and safety, building life and fire provisions, hazardous demolition waste management (asbestos for example) and nuisance impacts like dust and noise. ESDD has determined that these risks and impacts are limited and can be readily addressed through standard mitigation measures. Further, it has been determined that the the Ministry of National Education has experience working with international financial institutions and has the capacity to implement the project in line with the Bank's E&S requirements.

Elements of an E&S management systems, specifically for health and safety, are in place at the ministry level and at select schools. These will be improved at the school level to consider both environmental and social issues. The ESMP developed as part of ESDD will be applied to all schools but tailored based on school-specific E&S risk assessments.  There is a potential for impacts to cultural heritage if school buildings are listed. This risk will be managed in line with national and EBRD requirements and is expected to be limited considering the age of the buildings. Any new boilers installed as part of the project to be compliant with EU emissions limits.

Most, if not all works, are expected to take place during school holidays to reduce impacts to learners. All works are expected to take place within existing school buildings. Any building insulation and/or cladding installed by the project will be confirmed by the project engineer to be compliant with relevant standards on flammability, fire safety, and other requirements.

Implementation of the Project ESAP will ensure that the E&S performance of each school is improved including health, safety and environmental provisions, addressing unsafe infrastructure, emergency equipment and response procedures, waste management, security and tracking key KPIs such as energy and water use. The Ministry of National Education and school human resources provisions are guided by national legislation and generally aligned with the EBRD's requirements. Some minor improvements on grievance management will be included in the ESAP and specific HR requirements will be required for all project contractors. Technical Cooperation will provide further support and guidance to ensure E&S risks and impacts are appropriately considered and mitigated.

A non-technical summary (NTS) has been produced as part of ESDD and will be disclosed with the PSD. A Stakeholder Engagement Plan (SEP) will guide engagement with stakeholders and the disclosure of information at the school level, and it includes a grievance mechanism. The SEP, together with the ESMP, cover school access, safety of learners and safeguarding issues during project works.

Technical Cooperation and Grant Financing

Technical Cooperation will be provided to support the timely and effective procurement and implementation of all goods, works and services contracts under the project by the Ministry of National Education. The total cost of the Technical Cooperation is EUR 1.5 million.

Company Contact Information

Izzet Yerdes (Ministry of Treasury and Finance General Directorate of Foreign Economic Relations)
dei_pfd@hmb.gov.tr
+90 312 204 7362
www.hmb.gov.tr
Inonu Bulvari No:36 06510 Emek/Ankara

PSD last updated

11 Jun 2020

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.

Project Complaint Mechanism (PCM)

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 accountability mechanism.

The accountability mechanism 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 our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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