Izmir Metro Project II

Location:

Turkey

Project number:

48348

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

23 May 2018

Status:

Disbursing

PSD disclosed:

11 Oct 2017

Translated version of this PSD: Turkish

Project Description

A EUR 80 million loan to Izmir Metropolitan Municipality. The proceeds will be used for the construction of the Fahrettin Altay-Narlidere metro line with a total length of 7.2 kilometers including underground stations and electromechanical works.

Project Objectives

The construction of a new metro line is part of city's extension of its urban rail network to meet increasing demand, providing an environmentally friendly alternative to private vehicles.

Transition Impact

The project's transition impacts will be derived from Green Economy Transition (GET). Metro development in Izmir represents a major investment in zero-emission transport at the local level, and as such is a strong contributor to piloting GET in the municipal sector. The project will serve as a demonstration case of GET applied to urban transport, particularly by promoting the sustainable cities concept. It will contribute to sustainable transport through providing an alternative solution to the use of buses, minibuses, taxis and private vehicles, significantly contributing to the reduction of air pollutants and GHG emissions.

Client Information

MUNICIPALITY OF IZMIR

With a population of nearly 4.2 million, Izmir is the third largest metropolitan municipality in Turkey.

The Fahrettin Altay-Narlidere Metro Line will be operated by the city's municipal public transport company, Izmir Metro A.i.

EBRD Finance Summary

EUR 80,000,000.00
The EBRD's EUR 80 million to the city will be part of the EUR 210 million financing package, which it is expected to be co-financed by parallel lenders. The remaining EUR 40 million will be provided from the city's budget.

Total Project Cost

EUR 250,000,000.00

Environmental and Social Summary

The extension of the rail system in Izmir will expand public transport provision, leading to social and environmental benefits including reduced or avoided emission of CO2 and other air pollutants. The most significant impacts will occur during project construction, including generation of construction waste, dust, noise, air emissions and additional traffic. The contractors will need to carefully manage construction safety and minimise the disruption to local communities and businesses. Health and safety issues including design and maintenance of the railway system in line with EU standards, occupational health and safety and labour issues such as working at confined space, working hours, employee grievance management and relationship with worker organizations, and community safety issues will be reviewed to ensure compliance with the Bank's performance requirements.

Fire prevention and the emergency response capacity of Izmir Metro will also be assessed as part of the appraisal process. As the line will be constructed using a 'tunnel boring' method and pass underground, no resettlement is required for the current design. This will be confirmed during due diligence. The environmental and social appraisal will be carried out by consultants financed by technical cooperation funds, who will also develop a stakeholder engagement plan and a grievance mechanism for the project. Information will be also collected to identify gender gaps with respect to service provision and career opportunities at Izmir Metro with a view to establishing interventions and structuring the dialogue with the client to address these gaps.

Technical Cooperation

Pre-signing

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 Infrastructure Project Preparation Facility.

Post-signing

Corporate Development: This assignment will include assistance to Izmir Metro with corporate accounting and management practices, review of existing Public Service Contract performance and monitoring indicators, asset management practices, operation of park-and-ride facilities and further efficiency improvements as well as with all related procurement processes for the metro line extension. The estimated cost of the assignment is EUR 275,000, proposed to be financed by an international donor or the EBRD's Shareholder Special Fund.

Company Contact Information

Mehmet Oguz Ergenekon
ibbrsistem@gmail.com
00902322931200
www.izmir.bel.tr

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.