GrCF2 W2- Ankara Bus Project

Location:

Turkey

Project number:

51474

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

16 Sep 2020

Status:

Concept Reviewed

PSD disclosed:

30 Jun 2020

Project Description

A senior loan of EUR 45 million loan to EGO Genel Mudurlugu, the Ankara Transport Company. The proceeds will be used for the procurement of 250 Compressed Natural Gas, or CNG, buses and installation of two fuelling stations. In addition, the company's own funds will be used to procure 30 diesel, EURO 6 compliant buses as part of the project. 

Project Objectives

New buses will help to tackle the growing demand for public transport. It will extend the capacity and reduce operation and maintenance costs by replacing the existing diesel buses that are over 15 years old and EURO 2 in terms of emission standards.

The CNG buses generate significantly fewer emissions (both GHG and other pollutants) than buses with traditional diesel engines. The new diesel buses are subject to EURO 6 emissions standards in line with EU regulations and have the highest potential to eliminate the majority of exhaust pollutants that have an impact on air quality. The project also increases the capacity of public transport services and will benefit 5 million people. 

Transition Impact

ETI score: 70

The project is part of the Green Cities Framework (GrCF2, Window II), which provides a strategic and multi-project approach targeting environmental issues in selected large cities in the Bank's countries of operation. The primary goal is to achieve significant environmental improvements and promote the green transition quality within the relevant cities. The GrCF2 also aims to build the necessary capacity and facilitate better coordination and buy-in among various stakeholders within cities in order to improve the governance, operational efficiency and financial sustainability of the targeted investments and initiatives. These objectives are supported by the development and implementation of a city-specific Green Cities Action Plan (GCAP) identifying and prioritising climate change and environmental challenges and ways to address them through targeted investments, services and policy instruments.

The project promotes the transition objectives of the GrCF2 in the following ways:

Green: The project is expected to result in significant reductions in air pollutant and GHG emissions compared to current operations, through the expansion of public transportation infrastructure coupled with partial modernisation of the existing fleet with vehicles subject to stricter emission standards.

Well-governed: Preparation of a comprehensive GCAP and the implementation of a Corporate Development Programme. The Bank will provide technical assistance to review and improve existing Key Performance Indicators and asset management practices as well as further efficiency improvements and opportunities for private sector involvement.

Client Information

ANKARA TRANSPORT COMPANY

The Ankara Transport Company is the public transport operator, was established in 1942, to serve the city of Ankara with a population of more than 5 million. The operator is affiliated with Ankara Metropolitan Municipality.

EBRD Finance Summary

EUR 45,000,000.00

EUR 45 million

Total Project Cost

EUR 50,000,000.00

Additionality

Key sources of additionality are financing structure, helping projects and clients achieve higher standards as well as knowledge, innovation and capacity building.

The EBRD stands ready to help the company improve corporate governance, including the climate risk mitigation and higher environmental standards. The EBRD will provide expertise, innovation, knowledge and capabilities that are material to the timely realisation of the project's objectives.

Environmental and Social Summary

Categorised B (2014 ESP). Key Environmental and Social (E&S) impacts/risks to consider include overall Environmental, Health and Safety (EHS) management capacity and performance, labour, health and safety and road safety practices and standards. E&S due diligence is currently being undertaken by an independent consultant together with the technical and financial due diligence and will include a review of the client's existing management systems and operations with specific attention to the maintenance depots, auxiliary facilities and workshops, fuelling stations, fire safety, road safety and driver trainings, labour practices, equal opportunities and gender, accessibility and affordability issues. It will also include an analysis of the E&S benefits and impacts associated with the project. This project summary document will be updated upon completion of the E&S due diligence to include the outcomes.

Technical Cooperation and Grant Financing

It is envisaged that the technical cooperation (TC) support will provide assistance with the following:

Pre-signing:

TC 1: Technical, Financial, Environmental and Social Due Diligence The estimated cost of the assignment is up to EUR 120,000 to be financed by EBRD's Shareholder Special Fund (SSF).

TC2: Pre-signing Procurement Support Consultancy support to support Ankara for the tender preparation and application of the EBRD PP&Rs for the contracts proposed for financing by the EBRD. The estimated cost of the assignment is up to EUR 70,000, to be financed by the SSF.

TC3: Preparation of Feasibility Study for the company to receive central government approvals, which will make the project eligible for EBRD financing. Cost of the assignment is EUR 20,000 financed by the SSF.

Post-signing:

TC 4: Implementation Support: Project Implementation Support Services to the company to include the organisation of a transparent procurement process for the procurement of up to 250 CNG buses and up to 30 diesel buses in accordance with EBRD's PP&R as well as assistance to the City in administration of the contract. The estimated cost of the assignment is up to EUR 100,000. It is proposed to be financed by an international donor or the SSF.

TC 5: Corporate Development Programme Services to ensure the company is supported with the preparation and implementation of a Corporate Development Programme including development of Key Performance Indicators and a fleet renewal strategy for transition to low carbon and electric technology. The assignment will include the development of a written methodology to enable the client to produce financial reporting in the company format. The estimated cost of the assignment is up to EUR 400,000 which is expected to be financed by an international donor or the SSF.

TC 6: Green Cities Action Plan to prioritise investments in Ankara in pursuit of the green agenda. The estimated cost of the assignment is up to EUR 300,000 and is expected to be financed by an international donor or the SSF.

Company Contact Information

Yunus Erkan
yunus.erkan@ego.gov.tr
00903125071000
00903125071552
https://www.ego.gov.tr/
Emniyet Mah. Hipodrom Cad. No:5 A Blok Yenimahalle / Ankara

PSD last updated

30 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.

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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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