Tersan Floating Dock

Location:

Turkey

Project number:

48610

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Approval date:

04 May 2017

Status:

Repaying

PSD disclosed:

06 Oct 2016

Translated version of this PSD: Turkish

Project Description

The EBRD is considering providing a senior loan of up to USD 21 million to Tersan Tersanecilik Tasimacilik Sanayi ve Ticaret A.S. to finance the construction of a new floating dock for servicing, repairing and maintaining commercial maritime vessels near Istanbul, Turkey. Total project costs are estimated at USD 30 million.

Project Objectives

The primary purpose of the project is the strengthening of Tersan's competitive position in the maritime vessel maintenance industry in Turkey along with sectoral expansion. Tersan will replace an existing leased dock with the planned investment. Construction of the floating dock will enable Tersan to increase its capacity and achieve international best practice for operation of such facilities.

Transition Impact

The Project will build on the transition impact through:

  • New ways of financing. The project will demonstrate wider availability of financing on a long term basis to the ship repair-and-maintenance industry in Turkey.
     
  • Improving corporate governance. The transaction will support improvements in corporate governance standards and business conduct and, in doing so, is expected to bring significant demonstration effects in the Turkish vessel building and maintenance sector.
     
  • Greater competition. The project will be the fourth largest dock in Turkey when it is completed and will be able to service post-Panamax size vessels, which currently can only be serviced Page 2 by five docks in Turkey. With its increased crane lifting capacity, will also be able to cater for engine conversions, which is currently not possible at Tersan's existing docks.

Client Information

TERSAN TERSANECILIK TASIMACILIK SANAYI VE TICARET A.S

Tersan's primary activity is the provision of repair and periodic maintenance services to owners or operators of a variety of maritime vessels and structures at its repair docks.

EBRD Finance Summary

USD 21,000,000.00

Total Project Cost

USD 30,000,000.00

Environmental and Social Summary

The project has been categorised B under the Bank's Environmental and Social Policy (ESP) (2014) as the environmental and social (E&S) impacts associated with the construction of the floating dock can be readily assessed and mitigated.

Environmental and Social due diligence (ESDD) has included an initial site visit by the Environmental and Sustainability Department. ESDD by independent consultants will be undertaken and include a more detailed review of the project documentation, systems and procedures in place to manage E&S issues.

The project is located in the Yalova shipyard approximately 95 km south west of Istanbul. There is already a leased floating dock at the location of the new replacement dock. Although the new dock is significantly larger, Tersan has indicated that no dredging will be required for the replacement. The company is also carrying out class conversions for vessels on site and this includes the conversion of container vessels to carry livestock. The standards/design are specified by clients and are reported to be in line with international standards class certifications, which will be verified during the ESDD.

Information provided to date indicates that the company operates management systems in line with good international practice and currently have certified systems for ISO 14001, OHSAS 18001 and ISO 9001. Site operations are also subject to audits by their clients. There appears to be a positive health, safety and environment culture on site, with leadership from the top.

Tersan has an operational worker grievance mechanism but has not prepared a formalised stakeholder engagement plan including an external grievance mechanism for potential project affected persons. Information reviewed to date does however indicate that many elements of the Bank's Performance Requirement (PR)10 are in place within existing company practices.

An Environmental and Social Action Plan (ESAP) will be prepared to structure the project to meet the Environmental and Social Policy 2014 and associated PRs.

The Bank will monitor the E&S performance of the project and the implementation of the ESAP through annual E&S reports and may also conduct monitoring visits on a risk driven basis, as required.

This project summary document will be updated following the completion of the ESDD.

Technical Cooperation

None.

Company Contact

Information Ahmet Teyfik Paksu apaksu@tersan.com.tr 00902264656200 00902264656200 http://www.tersanshipyard.com/home Acicesme Mevkii, Bogazici Cad. No:28, Tavsanli # Altinova, 77740, Yalova / Turkey Business opportunities

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)

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Text of the PIP

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