To decrease the amount of Municipal Solid Waste (MSW) destined for landfill and to increase the production of renewable electricity.
The Project involves financing the construction of a Waste to Energy Generation (WtE) facility, developed by Istanbul Metropolitan Municipality (IMM). The WtE facility is located about 20 km north of Istanbul in the Eyüp district. It would be the largest facility in Europe with an annual capacity of 1 million tons (about 15% of Istanbul’s waste), generating 630 GWh of net electricity sufficient for 400,000 households.
The Engineering, Procurement and Construction (EPC) contract was awarded to Hitachi Zosen Inova – Makyol İnşaat Sanayi Turizm ve Ticaret A.Ş. Joint Venture (HZI-Makyol). The EPC contractor will also operate the WtE for one year before transferring to ISTAC. As of July 2021, 98% of construction works have been completed.
Policy and Categorization. The Project is being co-financed with the BSTDB, together with the other co-financiers BNP Paribas (BNPP) and Societe Generale (SG) and Swiss Export Risk Versicherung (SERV), referred to as Lender Group. The Project’s E&S risks and impacts have been assessed in accordance with IFC’s Environmental and Social Performance Standards (IFC PSs). The application of these standards which are widely used in private sector operations, is allowed under BSTDB’s Environmental and Social Policy (ESP). BSTDB also has an Environmental and Social Exclusion List (ESEL). To ensure a harmonized approach to addressing the E&S risks and impacts of the Project, and as permitted under AIIB’s ESP, IFC’s PSs, as well as BSTDB’s ESEL, apply to the Project in lieu of AIIB’s Environmental and Social Policy.
AIIB has reviewed the IFC’s PSs, and BSTDB’s ESEL and is satisfied that: (i) they are consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP, including AIIB’s ESEL and the relevant Environmental and Social Standards; and (ii) the monitoring procedures that are in place are appropriate for the Project. BSTDB has categorized the E&S risks of the Project as Category A (which is equivalent to Category A if AIIB’s ESP were applicable).
Instruments. An Environmental Impact Assessment (EIA) was prepared in July 2012 based on applicable Turkish EIA laws and regulations. Subsequently, an Environmental and Social Due Diligence (ESDD) study, which includes a Non-Technical Summary and a Stakeholder Engagement Plan (SEP), was carried out against the national legislation and related international standards as well as the IFC PS and was completed in October 2019. The associated facilities, include two substations, a switchyard, and the transmission lines. The ESDD report included recommendations for the implementation of E&S plans. An Environmental and Social Action Plan (ESAP) was prepared and is being monitored through the semi-annual E&S monitoring reports submitted by the IMM to the Lender Group. The E&S documents including Non-Technical Summary, ESDD report and SEP have been disclosed in English and in Turkish on the IMM’s website. These documents have also been disclosed on BSTDB’s website and AIIB has disclosed links to these documents on its website. All the E&S documents have been reviewed and are satisfactory. An annual E&S performance report for the first year of operation, both in Turkish and English, will be disclosed through the project website.
Environmental and Social Aspects. The Project’s construction stage impacts were addressed though mitigation measures as described in the ESIA, ESDD report and E&S monitoring reports. The potential environmental impacts during the operation stage would include noise, gas emissions from the stack, the handling of ash and other residuals which can be deemed as hazardous wastes, water effluents, gas emissions from diesel engines and other machinery. Potential risks will be mitigated through an ESMP for operation. The Project did not require any land acquisition, as the land for the Project site and the associated facilities belong to the IMM in advance. Subsequently, no economic loss or physical displacement impacts are observed.
Stakeholder Engagement, Consultation and Information Disclosure. The SEP defines the roles and responsibilities, which the Contractor and subcontractors are expected to implement for both the construction and operation phases. The project includes provisions of Code of Conduct (CoC) for workers and provisions to address Gender Based Violence (GBV) and Sexual Exploitation and Abuse (SEA). Dedicated Community Liaison Officer (CLOs) conduct monthly meetings with the headmen of the affected neighborhoods. Project-related activities (noise-vibration-traffic congestion announcements, local employment and procurement, etc.) are disclosed to the local public via related mediums such as neighborhood headmen offices. Concerning COVID-19 measures, online communication channels have been designated for consultation and information dissemination. An Employment Policy is prepared and being evaluated. SEP is updated in 2021.
Project Grievance Redress Mechanism (GRM). A CLO is assigned by the EPC Contractor for construction and one more additional year, who will hand over the grievance redress management to the operator firm without any gaps. To capture worker’s and Project Affected People’s grievances, both Platforms of the Borrower and the subcontractor is in use. The GRM established for the project has received a number of grievances which has been resolved and reviewed by the Project Team.