MR3: Gaziantep Solar Project

Location:

Turkey

Project number:

51857

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

12 Oct 2021

Status:

Passed Concept Review, Pending Final Review

PSD disclosed:

26 Oct 2020

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

A senior loan up to EUR 10 million to Gaziantep Metropolitan Municipality to finance the construction of solar photovoltaic (PV) plants of up to 27 MW total installed capacity to supply the city's own consumption.

Project Objectives

Turkey experienced significant population growth caused by the refugee influx since the start of the conflict in Syria. Gaziantep has a population of 2.1 million and hosts around 450,000 of Turkey's 3.7 million refugees. The refugee crisis has placed a huge strain on Gaziantep's existing infrastructure as it seeks to maintain service levels in the face of rapid unexpected population growth. It is in continuous need of investments to maintain and provide sustainable, high quality, efficient municipal services to its inhabitants.

The solar PV plants will support the city's fiscal budget through annual savings in electricity bills - one of the biggest cost items in the city's budget - without adding to greenhouse gas emissions of the sector. The electricity generated by the solar PV plants will be netted-off against the overall consumption of the city's facilities including but not limited to administrative buildings, the light rail system and water pumps and facilities.

The proposed solar PV plants will support Gaziantep's aim to become the first metropolitan municipality in Turkey which covers all of its electricity need from renewable sources. 

Transition Impact

ETI score: 75

The project is part of the Municipal Resilience Refugee Response Framework (MR3), which is designed to support the resilience of municipal infrastructure services by financing critical investments in host communities accompanied by targeted sector reform elements focusing on improving funding sustainably post investment, improving accountability through formalised performance indicators or service contracts and increasing private sector participation where feasible. The project promotes the transition objectives of the MR3 in the following ways:

Resilient: The project is expected to alleviate the stress on related infrastructure services amplified by the refugee crisis and therefore support the resilience of the sector by financing the implementation of solar PV plants with a total installed capacity of 27 MW to be self-consumed by GMM's facilities, which will result in energy savings and the supply of clean energy. This is expected to alleviate the financial burden of GMM, and increase its capacity to provide better and offer more municipal services accessible to local host communities and refugees.  

Well-governed: The renewable electricity capacity installed will result in cost savings for the city, which will be committed to further infrastructure investments to alleviate the impact of refugee inflow.

Client Information

MUNICIPALITY OF GAZIANTEP

EBRD Finance Summary

EUR 10,000,000.00

Senior Loan

Total Project Cost

EUR 17,000,000.00

Additionality

The additionality of the Bank is derived from the long-term nature of the financing. The Bank's involvement is also additional by helping the project and the client achieve higher standards through improved management of environmental, social and governance risks and knowledge, innovation and capacity building. The EBRD will provide expertise in energy and resource efficiency, climate mitigation financing and best international procurement standards.

Environmental and Social Summary

Categorised B (2019 ESP) and low-medium risk. Key Environmental and Social (E&S) risks and impacts to consider include both formal and informal land use, E&S capacity of the implementing agency and contractor management and performance in particularly with regard to labour and working conditions and Health & Safety (H&S). E&S due diligence will be undertaken by a consultant and will include a review of the project implementation arrangements and an assessment of the project site location(s). An Environmental and Social Action Plan will be prepared for each component of the project with elements targeted at the client, the implementing agency and the engineering, procurement and construction contractor. This project summary document will be updated when the environmental and social due diligence has been concluded.

Technical Cooperation and Grant Financing

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

Pre-signing:

TC 1 - Feasibility Study, Concept design, Tender Preparation and Advanced Procurement Support for Solar PV Project: The estimated cost of the assignment is up to EUR 437,000 which to be financed by the allocation under the CRSA of the EBRD SSF.

Post-signing:

TC 2 - Supervision Engineer and Implementation, Environmental and Social and Health and Safety Support for Solar Project: The purpose of this assignment is to assist GMM in project supervision, and health and safety and ESAP implementation during the construction and commissioning period for the solar PV project. Estimated cost of this assignment is up to EUR 500,000, proposed to be financed by an international bilateral donor, a multi-donor fund, the SSF Turkey or the CRSA under EBRD SSF.

Company Contact Information

Ahmet Erturk
ahmeterturk@gaziantep.bel.tr
+90 850 207 27 27
https://gaziantep.bel.tr/tr
Incilipinar mah. 4 Nolu Cadde Buyuksehir Belediyesi Binasi Sehitkamil / Gaziantep / Turkey

PSD last updated

06 Jul 2021

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.

 

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