Tbilisi International Airport Extension

Location:

Georgia

Project number:

44461

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Status:

Cancelled

PSD disclosed:

05 Aug 2014

 

Translated version of this PSD: Georgian

Project Description

The EBRD is considering providing a senior loan to TAV Urban Georgia in order to: (i) partially finance the construction of a new runway (on a footprint of the old disused runway) at Tbilisi International Airport (“the Airport”) to cater for current and future traffic growth and changes in the types of aircrafts landing at the Airport and achieves the improvement of operational safety of the Airport and (ii) refinance existing debt.

The Project involves the construction of a new runway that meets international standards in the place of the old disused runway. After the rehabilitation, this new runway will take over the role of the main runway in operation and the role of the current operational runway will be changed to supportive. Thus, without disturbing the Airport operations, the Project will provide the Airport with high standard and safer runway, capable to service larger aircrafts and at the same time the presence of a standby runway will increase the reliability of Airport’s operations.

Transition Impact

The transition impact of the proposed project will derive from its support for competitive private sector activity in the Airport operations and is expected to be delivered through the following:

  • Setting standards of business conduct / Environmental Management: Obtainment of Airport Carbon Accreditation (assessment and recognition of efforts to manage and reduce carbon emissions from airport operations);
  • Further strengthening of competition in the air transport industry: Attracting new airlines, increasing the number of destinations.

The Client

TAV Urban Georgia LLC is a special purpose vehicle, established under the laws of Georgia in 2006. TAV Urban Georgia LLC is majority owned by TAV Havalimanlari Holding A.S., the leading airport operator in Turkey.

EBRD Finance

A senior loan of up to USD 42.5 million to TAV Urban Georgia.

The Project will be co-financed with the International Finance Corporation (‘IFC’) who will provide a parallel senior loan of up to USD 42.5 million and with TAV Urban Georgia.

Project Cost

The total project costs are estimated at around USD 140 million.

Environmental Impact

Categorised B under the Bank’s 2008 Environmental and Social Policy. The potential environmental and social (E&S) impacts associated with the Project are readily identified. These impacts can be addressed through adequate mitigation measures.

E&S due diligence for the Project has been undertaken by the EBRD in collaboration with IFC, and included a site visit during which observations of TAV Urban Georgia and other airport operations as well as interviews with TAV Urban Georgia managers and staff were carried out. Due diligence will also include development of a Stakeholder Engagement Plan, a Non Technical Summary in the form of a fact sheet on the runway construction and unavoidable impacts, and an Environmental and Action Plan (ESAP). The Non Technical Summary will be posted on the TAV Urban Georgia website and will be made available to nearby residents and to airport passengers and workers.

Given the current nature of the proposed works and the existence of two parallel runways (one operational and one disused which will be reconstructed), landing and take-off approaches will not change and there will be no additional impact on neighbouring areas. The construction works will cause some temporary and localised impacts, including traffic safety issues along the construction material transport route, noise, air emissions (especially dust) and construction waste. The construction works will be managed in accordance with the local environmental legislation and good construction practices, and therefore, these impacts are expected to be effectively mitigated.

The E&S due diligence has found that TAV Urban Georgia has the capacity to meet the Bank's Performance Requirements and to implement the requirements of an ESAP. They have well developed management systems, including certification under ISO 9000 and 14001, and performance is generally good, with some minor modifications needed, which can be readily defined and implemented pursuant to an agreed ESAP.
TAV Urban Georgia is not responsible for aviation fuel storage or refuelling operations, nor for aircraft maintenance, and so the most significant potential pollution-related impacts at the airport are beyond their control. They are responsible for storing and applying de-icing fluids, storage and use of fuels for their own vehicles and equipment, and maintenance of those vehicles and equipment. They have two small aboveground fuel storage tanks for gasoline and diesel and a single refuelling station for vehicle/equipment; this area is fenced and well-controlled. The maintenance shop is generally good condition but would benefit from enhanced containment for new and used oils and solvents. Waste from the terminal and from maintenance shops and other TAV-controlled airport work areas are segregated by type (glass, paper, metal, etc.) and taken off-site by licensed vendors.

TAV Urban Georgia operates a fully equipped fire station on airport grounds, which has several engines and extensive equipment for fighting fuel and other fires, and which is staffed 24/7. Training records show extensive and appropriate training of all fire-fighters, all of whom have first aid training. TAV Urban Georgia monitors noise levels at the property boundary, and peak noise levels can exceed WHO standards. However, TAV Urban Georgia has little or no influence over aircraft operations, so this is largely beyond their control.

Stakeholder engagement will include formalisation of existing communication practices as well as posting, on the internet and in the terminal, one or more fact sheets that describe the construction project and how potential impacts will be controlled.

An ESAP is being developed to mitigate the identified E&S issues and impacts during preparation, construction and operation of the project, and to bring the Company's operations into compliance with the EBRD’s Performance Requirements. A previous transaction with TAV Georgia was under the Bank's 2003 Environmental Policy, and requirements in the previous finance agreements do not address corporate systems and performance. The new Project is subject to the 2008 Environmental and Social Policy and therefore the ESAP will include additional requirements, particularly with new requirements relevant to labour and stakeholder engagement.
This summary will be updated when E&S due diligence is complete.

Technical Cooperation

None.

Company Contact

TAV Urban Georgia LLC
Tel: +995 322 310 265
Fax: +995 322 310 322
www.tav.com.tr

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@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.