Turkey Canakkale Solid Waste Project / European Bank


Location: Turkey

Project number: 49281

Business sector: Municipal and environmental infrastructure

Notice type: Private

Environmental category: IESE

Target board date: 28 Mar 2018

Status: Concept Reviewed

PSD disclosed: 31 Jan 2018

Project Description

Provision of a senior loan of up to TRY 35 million to finance the development of a full-scale integrated solid waste management system in the province of Canakkale, Turkey pursuant to a 29 years concession awarded by the Canakkale Solid Waste Management Municipal Union. The project area, including the Canakkale and nearby municipalities with a total population of 173,000, is located at the west end of the Marmara Region. The EBRD loan will be complemented by a contribution of up to USD 1.5 million from the Clean Technology Fund.

The project will include the transfer of the existing municipal solid waste operations in Canakkale and the realisation of additional investments including the (i) construction of a mechanical biological treatment plant, (ii) procurement of a vehicle fleet, (iii) rehabilitation of the existing leachate treatment plant and (iv) related investments in the existing facility.

Project Objectives

The project aims to improve solid waste management system in the Canakkale region through investment and know-how, resulting in an integrated solution in line with Turkey's national solid waste programme.

Transition Impact

The transition impact stems from the following two transition qualities: 1) Competitive: The project will introduce a private sector operator to the provision of integrated solid waste management services. Given the current limited involvement of the private sector, a successful transaction will constitute an example for other municipalities which would benefit from similar PPP models for waste minimisation and attract other private investments in the sector.

2) Green: The project will contribute towards the Bank's Green Economy Transition by enhancing innovation and broadening environmental dimensions of the solid waste management sector by demonstrating the economic feasibility of implementing an integrated approach to waste management. The project will promote the sustainability of natural resources, support pollution prevention and will reduce the degradation of ecosystems The project will be included in the Near Zero Waste Programme of Turkey, which aims to foster the implementation of best available technologies for waste minimisation with high positive environmental impact and low market penetration.

Client Information

SUEZ CANAKKALE RR ATIK HIZMETLERI AS

Suez Canakkale RR Atik Yonetim Hizmetleri A.S., a special purpose company incorporated in Turkey and owned by Sita Cevre (90 per cent) and Altas Yapi Sanayi ve Temizlik Hizmetleri Ticaret A.S (10 per cent).

EBRD Finance Summary

TRY 35,000,000.00

TRY 35 million accompanied by a Near Zero Waste contribution of up to USD 1.5 million from the Clean Technology Fund.

Total Project Cost

TRY 65,500,000.00

Environmental and Social Summary

The project has been categorised B in accordance with the Bank's 2014 Environmental and Social Policy, following an Initial Environmental and Social Examination (IESE). The IESE confirmed that the Project's potential adverse impacts would be localised and readily addressed through careful design, the implementation of mitigation measures and appropriate management practices.

The environmental and social due diligence (ESDD) to be carried out by independent consultants will cover a review of the existing environmental and other relevant studies on the proposed project; a review of the existing waste management operations and the Client's capacity to implement the project in accordance with the Bank's Performance Requirements; and preparation of an E&S Analysis, Non-Technical Summary of the project for public disclosure, Stakeholder Engagement Plan (SEP), and Environmental and Social Action Plan (ESAP).

The PSD will be updated once the results of the ESDD become available.

Technical Cooperation

Pre-signing: TC provided under NOW to further assess the optimal solution to monetise different waste streams (e.g. glass, PVC or electronic recycling) as well as analyse associated costs related to the establishment of dedicated collection systems. The estimated cost of this assignment is up to EUR 75,000, to be financed by the pre-approved NOW TC programme.

Company Contact Information

Metin Suadiyeli metin.suadiyeli@suez.com +90 216 572 74 80

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