A senior loan of up to EUR 80 million loan to Izmir Metropolitan Municipality. The proceeds of the loan will be used for the construction of Buca metro line, including 11 stations, a warehouse building and 19.5 km of metro line (13.5 km main line and 6 km access tunnels).
The construction of a new metro line is part of the city's extension of its urban rail network to meet increasing demand, providing an environmentally friendly alternative to private vehicles.
ETI score: 70
The Project is part of the Green City Framework 2 (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.
This Project will contribute to achieving Framework objectives in the following ways:
Green: The Project is in line with the Bank's Green Economy Transition approach. The Project is expected to result in significant reductions in air pollution emissions, along with greenhouse gases, through the expansion of public transportation infrastructure coupled with a shift away from diesel fuel.
Well-governed: The Project will be the "follow-on project" for the City under EBRD Green Cities and will support the City to implement the Green Cities Action Plan, which introduced improvements in local planning and coordination of infrastructure development in medium and long term. The Bank will provide technical assistance to review and improve 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.
MUNICIPALITY OF IZMIR
Izmir Metropolitan Municipality is a public legal entity established and governed under Turkish laws. It is the third largest municipal entity in Turkey with a population of 4.4 million. The Buca Metro Line will be operated by the city's municipal public transport company, Izmir Metro A.S.
EBRD Finance Summary
A senior loan of up to EUR 80 million loan to Izmir Metropolitan Municipality. The remainder of the project cost will be financed by the parallel lenders and the City's own budget contribution.
Total Project Cost
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 IESE. The Project will be categorised and the scope of Environmental and Social Due Diligence ("ESDD") will be decided once more information becomes available on the line alignment, below and aboveground project components, and land acquisition. Key Environmental and Social ("E&S") impacts/risks to consider include: land acquisition; fire safety; geohazards (e.g., earthquakes); accessibility for the people with reduced mobility, as well as impacts associated with construction activities, including construction traffic safety and temporary disruption to traffic and accessibility; where construction is underground, stability of the nearby buildings; disposal of excavated material; chance finds; and labour and Occupational Health and Safety ("OHS") risks. ESDD will include review of the E&S performance for the first two projects signed with the City.
Technical Cooperation and Grant Financing
Technical, financial, and environmental and social due diligence will be carried out for the project (EUR 200,000 in total). This technical co-operation is funded from the EBRD's Shareholder Special Fund.
Pre-signing Procurement Support to review the design specifications and support to Izmir for the application of the EBRD Procurement Policies and Rules (PP&Rs) for the contracts proposed for financing by the EBRD. The cost of the assignment is EUR 74,000, financed by the EBRD's Shareholder Special Fund.
Implementation Support: Project Implementation Support Services to the Company to include the organisation of a transparent procurement process for the metro extension as well as assistance to Izmir Metropolitan Municipality for the preparation of tender documents in line with the EBRD PP&Rs for the contracts proposed for financing by the EBRD. The cost of the assignment is EUR 200,000, proposed to be financed by an international donor or the Shareholder Special Fund.
Corporate Development Programme. Assistance to the Company to review and improve asset management practices and strategy, as well as the development of a land value capture model to identify a best practice for Izmir. The cost of the assignment is EUR 450,000, proposed to be financed by an international donor or the Shareholder Special Fund.
Company Contact Information
Mehmet Oguz Ergenekon
Izmir Buyuksehir Belediyesi Cumhuriyet Bulvari 305; No:1 Konak/ IZMIR
PSD last updated
15 Dec 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
For business opportunities or procurement, contact the client company.
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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 email@example.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 email, mail 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.