Canakkale Solid Waste PPP

Location:

Turkey

Project number:

49281

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

IESE

Target board date:

05 Sep 2018

Status:

Concept Reviewed

PSD disclosed:

31 Jan 2018

Translated version of this PSD: Turkish

Project Description

Provision of a senior loan of up to TRY 35 million to finance the development of a full-scale integrated solid waste management system in the province of Canakkale, Turkey pursuant to a 29 years concession awarded by the Canakkale Solid Waste Management Municipal Union. The project area, including the Canakkale and nearby municipalities with a total population of 173,000, is located at the west end of the Marmara Region. The EBRD loan will be complemented by a contribution of up to USD 1.5 million from the Clean Technology Fund.

The project will include the transfer of the existing municipal solid waste operations in Canakkale and the realisation of additional investments including the (i) construction of a mechanical biological treatment plant, (ii) procurement of a vehicle fleet, (iii) rehabilitation of the existing leachate treatment plant and (iv) related investments in the existing facility.

Project Objectives

The project aims to improve solid waste management system in the Canakkale region through investment and know-how, resulting in an integrated solution in line with Turkey's national solid waste programme.

Transition Impact

The transition impact stems from the following two transition qualities:

1) Competitive: The project will introduce a private sector operator to the provision of integrated solid waste management services. Given the current limited involvement of the private sector, a successful transaction will constitute an example for other municipalities which would benefit from similar PPP models for waste minimisation and attract other private investments in the sector.

2) Green: The project will contribute towards the Bank's Green Economy Transition by enhancing innovation and broadening environmental dimensions of the solid waste management sector by demonstrating the economic feasibility of implementing an integrated approach to waste management. The project will promote the sustainability of natural resources, support pollution prevention and will reduce the degradation of ecosystems The project will be included in the Near Zero Waste Programme of Turkey, which aims to foster the implementation of best available technologies for waste minimisation with high positive environmental impact and low market penetration.

Client Information

SUEZ CANAKKALE RR ATIK HIZMETLERI AS

Suez Canakkale RR Atik Yonetim Hizmetleri A.S., a special purpose company incorporated in Turkey and owned by Sita Cevre (90 per cent) and Altas Yapi Sanayi ve Temizlik Hizmetleri Ticaret A.S (10 per cent).

EBRD Finance Summary

TRY 35,000,000.00

TRY 35 million accompanied by a Near Zero Waste contribution of up to USD 1.5 million from the Clean Technology Fund.

Total Project Cost

TRY 65,500,000.00

Environmental and Social Summary

The project has been categorised B, following an Initial Environmental and Social Examination ("IESE"). The IESE confirmed that the Project's potential adverse impacts would be localised and readily addressed through careful design as well as the implementation of mitigation measures and appropriate management practices. The environmental and social due diligence ("ESDD") was carried out by independent consultants and it covered a review of the solid waste management company's current environmental and social management practices and existing facilities and operations, and an Environmental and Social Analysis of the Project.

ESDD confirmed that the project will bring significant environmental benefits including a binary collection system, separation and treatment of waste prior to landfill disposal (MBT), improvements to the existing landfill (e.g. installation of leachate and landfill gas management systems) enabling EU compliant landfill operations, energy production from gas and medical waste sterilisation. The project aim to reduce the municipal solid waste (MSW) landfilled significantly from 88 per cent to 35 per cent. It is planned that landfill gas will be captured and flared and this should bring about a significant GHG reduction by 78 per cent or 240,000 tonnes CO2-eq/a. The project benefits also include rehabilitation of three waste collection centres and a new vehicle and maintenance depot that will be built. Further improvements that will be realised include support with public education and awareness raising programmes, a Research and Development (R&D) system to further improve the efficiency of the ISWM and assessment of new technologies that could be employed in the future. In addition, the company will set up an automation and data processing system. There will be employment created both during the construction phase and operation of the new facilities.

The CAKAB landfill which has been operational since 2009 is located in a naturally degraded area of an old trass quarry with no significant flora or fauna presence. The closest settlements to the landfill site are Kemel Village and Musakoy, at distances of 3.0 km and 1.8 km respectively from the site. The Hydrogeological Risk Assessment (HRA) has not identified any surface water bodies hydraulically connected with groundwater beneath the landfill within a distance of 5 km from the site. Based on the results of the HRA, the risk of the CAKAB landfill to the aquifer downgradient from the site is considered to be low.

ESAP has been prepared and will be agreed with the Client before Board to address the identified environmental and social issues and impacts during preparation, construction and operation of the project to bring the Project closer to meeting EBRD Performance Requirements. Key ESAP requirements include development and implementation of an environmental and health and safety (EHS) management system and audit program; obtaining  environmental permits and licenses at the appropriate stage of landfill development including clearance for a new EIA; clean-up of small dumpsite on route to landfill; for medical waste sterilisation plant, audit of upstream waste producers and development of  strict waste acceptance procedures; development of pest control measures; further environmental assessments as identified in the gap analysis of EIA and an ecology baseline study for landscape changes and the MBT plant development; development of  a Landfill Closure and Restoration Plan; implementation of a process to provide support to workers who lose their jobs at the BAROS Recycling Facility to enable them secure other jobs, development of a comprehensive set of landfill operating procedures including an Environmental Monitoring Plan); undertaking a Stability Risk Assessment and a bioaerosols risk assessment; ensuring new developments at the landfill conform with Best Available Techniques (BAT); consideration of EHS during the tender process; review of existing landfill operating and H&S procedures, performing a gap analysis and develop and implement a site specific set of H&S procedures; setting appropriate tariff levels to avoid affordability issues; development of site specific HR policy and procedures; implementation of a Stakeholder Engagement Plan (SEP) and supporting authorities with public awareness campaigns and educational activities.

The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP. The Bank will conduct monitoring visits, as required.

Technical Cooperation

Pre-signing: TC provided under NOW to further assess the optimal solution to monetise different waste streams (e.g. glass, PVC or electronic recycling) as well as analyse associated costs related to the establishment of dedicated collection systems. The estimated cost of this assignment is up to EUR 75,000, to be financed by the pre-approved NOW TC programme.

Company Contact Information

Metin Suadiyeli
metin.suadiyeli@suez.com

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