TASK Water Venture - Equity

Location:

Turkey

Project number:

40025

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

B

Status:

Cancelled

PSD disclosed:

06 Aug 2009

Project Description

The EBRD is considering providing a loan of up to €16 million and an equity investment to Turkish water company TASK, a joint venture between the Akfen Group (Turkey) and water company Tahal (Israel) with a view to upgrading and extending water and wastewater infrastructure in project cities/zones operated by TASK including refinancing and acquisitions. EBRD will assist in increasing private sector participation in the water market in Turkey by supporting the Company’s ongoing investment plans and acquisitions.

Transition Impact

Transition impact for the Project comes from:

(i) Increased Private Sector Participation. By supporting TASK, the Bank will be increasing private ownership forms in the water sector in Turkey through restructuring and improving water and wastewater services and will support the Company’s growth and expansion mainly though acquisition of new assets. The project will help to demonstrate that the private sector can be instrumental in implementing improvements in efficiency and increased service level in the water and wastewater sector.

(ii) Demonstration effects of good corporate governance, transparency and business standards.

The Client

TASK, a Turkish private company, is involved in managing and constructing facilities for production of drinking and potable water from surface and surface springs, collecting domestic and industrial water and providing wastewater treatment services. TASK has been awarded concessions for the Gulluk, Corlu, and Kars Water Supply and Wastewater Treatment systems as well as the Dilovasi Industrial Zone Wastewater Treatment and Main Collector Line BOT.

EBRD Finance

Equity: an equity investment for up to 20% in TASK.

Debt: up to €16 million long term senior debt primarily for the Dilovasi project including refinancing.

Project Cost

Up to €22 million.

Environmental Impact

1. Screening categories and rationale for classification

This project was categorised "B" in accordance with EBRD's 2008 Environmental and Social Policy, indicating that, where there are environmental and social impacts associated with the project, these are likely to be site-specific and easily addressed through mitigation measures. The project will improve the quality and efficiency of water supply and wastewater collection and treatment in Gulluk and wastewater collection and treatment in Dilovasi Organised Industrial Zone.

2. Information reviewed

The environmental and social due diligence included a review of the Company corporate environmental, health and safety and social (EHSS) management systems; site visits to Dilovasi and Gulluk; and a review of Concession and Service Level Agreements to assess current performance against EBRD's Performance Requirements (PRs). Due diligence has confirmed that the Company and its operations are generally in compliance with the applicable Turkish environmental, health and safety and labour requirements. A review of the EIA for Dilovasi found that the project has been structured to meet Turkish and EU environmental, social, health and safety standards.

Project related documents are available on the Sponsor’s website http://taskgulluk.com/

The Stakeholder Engagement Plan and a summary of the Environmental and Social Action Plans are available at:

  • TASK A.S. Levent Loft Buyukdere Cad. No:201 Daire :4 Levent 34394 Istanbul
  • TASK Dilovasi is Dilovasi Organize Sanayi Bolgesi 2. Kisim Coruh Cad. No:6 Dilovasi Kocaeli
  • TASK Gulluk is at Yeni Mahalle Manastir Cad. No:14 Daire:1 Gulluk Milas

The EIA for TASK Dilovasi is available at Dilovasi Organize Sanayi Bölgesi Müdürlüğü, Fatih Mah. Fabrikalar Cad. No: 6 Dilovasi-Gebze.

3. Environmental and Social issues

Due diligence identified that the Company Corporate Management Systems are largely based on international standards (ISO 14001, ISO 18000), however some additional resources and procedures are needed for the successful implementation of these systems and to achieve compliance with EBRD’s Performance Requirements (PR’s).

  • The Company's facilities are generally in compliance with national requirements for environment, health and safety although the Dilovasi site needs to address how excavated material will be disposed to ensure full compliance.

There are currently no Corporate due diligence procedures for assessing the environmental, health and safety and social risks of projects as part of the investment planning process.

  • Corporate management system requirements are not being fully applied on site.
  • Due diligence did not reveal any issues with regard to involuntary resettlement, or indigenous peoples, however a cultural heritage survey has not been carried out at one of its sites.
  • The Company has a variety of stakeholder engagement channels, but no formal procedures for stakeholder engagement and no formal corporate grievance processes. As a result there are no Stakeholder Engagement Plans at the operational level.
  • The potential impacts of tariff increases on vulnerable people are currently being reviewed by the EBRD. If any issues are identified, necessary mitigation measures will be included in the Environmental and Social Action Plan.

4. Environmental or social opportunities

TASK is seeking to invest in the water networks in Turkey to improve the management of water and waste water, to ensure ensuring that water quality and EU standards are met.

5. Summary of Environmental and Social Action Plan

An Environmental and Social Action Plan (ESAP) agreed with the Company addresses environmental and social issues identified during the due diligence, associated with the existing facilities and future investments. It aims to achieve and maintain compliance with national and EU standards and EBRD Performance Requirements within a reasonable time-frame. The ESAP includes:

  • measures for improvement of the Company's Corporate management system in such areas as EHSS due diligence of new investments, grievance mechanisms, land acquisition, cultural heritage and stakeholder engagement.
  • improvements to operational control procedures at Project sites for such issues as: implementation of EHS management systems, EHS training, human resources issues, waste management, emergency response, stakeholder engagement and contractor management.
  • the requirement for a Stakeholder Engagement Plan, including a grievance mechanism.
    The Company will provide the Bank with regular reporting on the implementation of the ESAP.

Technical Cooperation

None.

Company Contact

Tuna Ozaner
Levent Loft, Büyükdere Cad. no: 201 Daire: 4
Levent 34394 İstanbul
Tel: +90 212 283 09 29
Fax: +90 212 283 2663
E-mail: tuna.ozaner@taskas.com.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

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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. Requestors’ identities may be kept confidential, upon request.

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