Biotrend Cevre ve Enerji Yatirimlari A.S.

Location:

Turkey

Project number:

53000

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

B

Approval date:

21 Jul 2021

Status:

Signed

PSD disclosed:

27 Aug 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of a USD 20 million to purchase an equity stake in Biotrend Cevre ve Enerji Yatirimlari A.S. (the "Company" or "Biotrend"). Biotrend is engaged in integrated waste management and waste to energy production. The Company has been listed on Borsa Istanbul since April 2021. As a result of the transaction, EBRD will be a minority shareholder with a stake less than 10%.

Project Objectives

The equity investment into Biotrend solidifies EBRD's aim to promote private sector participation in municipal waste management. The Bank has an ongoing policy dialogue with the Ministry of Environment and Urbanisation to upgrade the legal framework for municipal PPPs with a focus on bankability.

The Project is in line with the Bank's Strategy for Turkey (BDS/TU/19-01(F)), Municipal and Environmental Infrastructure Sector Strategy (BDS19-069(F)) and the Green Economy Transition Approach 2021 i 2025 (BDS20-082(F)) and Strategy for the Promotion of Gender Equality 2016-2020 (BDS15-264(F)).

Transition Impact

ETI score: 66

The transition impact of the Project will be derived from:

(i)                 Green quality as the project is an equity investment into a pure renewable energy production and waste management services company.

(ii)                Well-governed quality as the project aims to advance corporate governance and climate-risk management, adopt higher environmental standards and procurement practices of the Company.

Client Information

BIOTREND CEVRE VE ENERJI YATIRIMLARI AS

Founded in 2017, Biotrend's main activities are solid-waste management and renewable energy generation under municipal concessions. The company operates 18 waste-to-energy plants in the Turkish cities of Izmir, Bursa, Balikesir, Hatay, Usak, Sivas, Aydin, Canakkale and Malatya, with a current total installed capacity of 72.6MW.

EBRD Finance Summary

USD 20,000,000.00

In total USD 20,000,000.00 of which USD 4,000,000.00 is EBRD equity participation fund

Total Project Cost

USD 20,000,000.00

Additionality

Key sources of additionality are; (i) standard setting to achieve higher standards on corporate governance improvements, including for climate risk management, (ii) helping adopt higher environmental standards, above 'business as usual' (iii) implementing higher gender standards and/or equal opportunities action plans by addressing women's unpaid household work burden through awareness raising and (iv) making use of EBRD expertise on best international procurement standards.

Environmental and Social Summary

Categorised B (2019 ESP), the environmental and social impacts associated with the development and operation of landfill gas and RDF-fuelled waste to energy plants are site-specific and can be readily managed. As this transaction is subject to capital market rules regarding MNPI, environmental and social due diligence was undertaken in-house using publicly available information.

Biotrend is an integrated waste management and waste to energy company currently operating 18 plants (waste sorting, biogas plants, landfill biogas and biomass) in Turkey with a total capacity of 72.6MW. The majority of these plants generate electricity from landfill gas. Their plants capture methane, a significant greenhouse gas, that would have otherwise been vented to the atmosphere. The waste to energy plants are modern, all commissioned after 2015. Based on the information available, the associated landfills are either operating in line with Turkish environmental legislation, which is aligned with the EU landfill directive, or have been closed to an adequate standard.  The planned investment programme involves the expansion of waste to energy activities at a variety of sites and it is not expected to be associated with significant environmental or social risks. The net impact of the investment programme is provisionally estimated to be a CO2-equivalent GHG saving of 1.1 million tonnes/year. The Company has an environmental management system certified to the ISO14001 standard, a health and safety management system certified to ISO45001. The Company engages the majority of its workforce directly, with a minimum age of employment of 18 and has written human resource policies in place in accordance with national legislation.

The Company undertakes to commit a post-investment audit to identify any gaps against the EBRD Performance Requirements (PRs) and ensuring that all of its plants operate in line with the PRs.   Where this is not currently the case, they will have up to three years to development and implement action plans to achieve full compliance. EBRD will receive regular monitoring reports.

Technical Cooperation and Grant Financing

Public awareness campaign on household waste disposal and separation in collaboration with the City of Izmir, to strengthen recycling rates and burden sharing at the household level. The Technical Cooperation will be funded under the Gender and Inclusion Framework.

Company Contact Information

Yatirimci Iliskileri
yatirimci.iliskileri@biotrendenerji.com.tr
+90 216 680 00 00
https://biotrendenerji.com.tr
Ekinciler Caddesi Ertürk Sokak 3 Kavacık Beykoz 34810 İstanbul

PSD last updated

27 Aug 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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