Turk Telekom Expansion

Location:

Turkey

Project number:

47969

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

C

Approval date:

13 Jan 2016

Status:

Repaying

PSD disclosed:

06 Oct 2016

Translated version of this PSD: Turkish

Project Description

The EBRD is providing a loan of up to USD 100 million to Turk Telekom, the leading communication and convergence technology group in Turkey offering its customers the complete range of fixed voice, mobile, data, and internet services as well as innovative convergence technologies. The financing will be used to support the investment in mobile broadband infrastructure in Turkey.

Project Objectives

The financing will support the expansion of the broadband infrastructure in Turkey including in the eastern regions where penetration remains lower compared to the rest of the country.

Transition Impact

Mobile broadband in Turkey is especially important given the low fixed penetration in the country and the 4.5G project will lead to increase in coverage and capacity of the broadband infrastructure in Turkey. There continue to be regional disparities in broadband penetration with Istanbul and Ankara enjoying higher penetration levels compared to the rest of the country. Substantial amount of the investment in 4.5G network will be directed to regions where broadband take up (both fixed and mobile) is not as strong as in larger cities.

Client Information

TURK TELEKOMUNIKASYON AS

Turk Telekom is the incumbent operator and leading communication and convergence technology group in Turkey. Turk Telekom and its subsidiaries provide integrated telecoms services from fixed and mobile voice to broadband internet.

EBRD Finance Summary

USD 100,000,000.00

Total Project Cost

USD 152,500,000.00

Environmental and Social Summary

The project was categorised C in accordance with 2014 EBRD Environmental & Social (E&S) Policy.

This means that environmental and social impacts associated with the project are likely to have minimal or no potential adverse E&S impacts. Turk Telekom is an existing client of the Bank and its environmental and social performance against EBRD Performance Requirements (PRs) in relation
to previous projects has been satisfactory to date. Environmental and social due diligence (ESDD) for this project has been based on reviews of the company's 2014 Environmental & Social Annual Report and responses to a completed questionnaire.

The ESDD did not identify any significant environmental and social issues and risks associated with the proposed expansion of the mobile network. The client's overall environmental and social risk management practices are in line with the EBRD's PRs.

The client has established ISO 14001 in its regional directorate and related units and also has achieved OHSAS 18001 Occupational Health and Safety certification. Training is provided to staff on environmental and health and safety matters via a Training Academy. The client's human
resources practice including an employee grievance mechanism is in line with PR2.

Any comments or concerns can be brought to the company's attention either verbally or in writing, or via the company's website.

The EBRD will monitor the project by reviewing annual environmental and social reports as well as site visits if needed.

Technical Cooperation

None.

Company Contact Information

Türk Telekom Investor Relations
investorrelations@turktelekom.com.tr
+90 212 309 9630
+90 212 352 9610
http://www.ttinvestorrelations.com/contact/

Yıldız Posta Cad. Vefa Bayırı Sok. No:40 Gayrettepe
Besiktas/Istanbul
TURKEY

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

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