GrCF2 W2- Ankara Bus Project

Location:

Turkey

Project number:

51474

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

02 Dec 2020

Status:

Signed

PSD disclosed:

30 Jun 2020

Project Description

A senior loan of EUR 57.1 million loan to EGO Genel Mudurlugu, the Ankara Transport Company. The proceeds will be used for the procurement of up to 254 Compressed Natural Gas, or CNG, buses and installation of a CNG filling station. In addition, the company's own funds will be used to procure up to 28 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 5.7 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 modernisation of the existing fleet with vehicles subject to stricter emission standards and shift away from diesel fuel.

Well-governed: This is the "trigger project" for the City under EBRD Green Cities Programme, and will support the City to develop a comprehensive GCAP which will introduce improvements in local planning and coordination of infrastructure development in medium and long term and strengthen institutional capacity of the City. 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. The Project will also pursue the development of the Land Value Capture model by the City.

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 5.7 million. The  operator is affiliated with Ankara Metropolitan Municipality.

EBRD Finance Summary

EUR 57,100,000.00

Total Project Cost

EUR 62,700,000.00

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). The Environmental and Social Due Diligence (ESDD) for the project has been undertaken by independent consultants and included an environmental and social (E&S) analysis of the project, a review of the current facilities and operations as well as the E&S management systems and the capacity of the company. Due to COVID-19 travel restrictions, ESDD has been carried out remotely.

The ESDD confirmed that E&S impacts associated with the purchase of the 254 CNG buses and 28 diesel buses reaching EURO VI emission standards will be mainly beneficial. Due to the topological features of Ankara, some of the bus routes have high elevation. Therefore, the Company needs to maintain diesel buses on its fleet due to the CNG buses' reduced climbing ability. The Project will contribute to improving accessibility and mobility for all user groups, air quality in the City, safety and efficiency of urban transportation. The modernisation of the fleet will enable 92 per cent NOx and 93 per cent PM emissions reductions. CO2 emissions will also be reduced by 19 per cent from 38,500 tonne/year to 31,300 tonnes/year.

The installation of the new CNG filling station and the on-going expansion of two depots to serve the new buses will result in site-specific impacts only, which can be managed through implementation of appropriate mitigation measures. The installation of the new CNG filling station and the on-going expansion of two depots to serve the new buses will result in site-specific impacts only, which can be managed through implementation of appropriate mitigation measures. It is confirmed that the project will not require acquisition of any land or result in involuntary resettlement or economic displacement. The Company does not currently plan any labour restructuring or redundancies.

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 254 CNG buses, up to 28 diesel buses and installation of a CNG filling station 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 identify and prioritise the City's most pressing environmental challenges, and develop a plan for investments for Ankara to pursue the green agenda. In addition, the GCAP methodology includes enhanced inclusion and gender considerations. The estimated cost of the assignment is up to EUR 350,000 and is expected to be financed by an international donor or the SSF.

TC 7: Land Value Capture Policy Dialogue to identify best practice approaches to LVC in Ankara and organise, prepare and manage seminars with municipal and ministry representatives, land developers and relevant private sector stakeholders in Ankara. The estimated cost of the assignment is EUR 250,000, proposed to be financed by an international donor.

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

17 Nov 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 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.

 

Share this page: