To restore and develop infrastructure and related facilities in the earthquake-affected provinces of Türkiye
The Project encompasses a sovereign-backed loan of USD100 million from AIIB to Türkiye İhracat Kredi Bankası A.Ş. (Export Credit Bank of Türkiye, or Turk Eximbank, or the Borrower), which serves as an emergency response to the earthquakes in 2023, to help restore and develop infrastructure and related facilities in the earthquake-affected provinces of Türkiye.
AIIB’s Environmental and Social Policy (ESP) including Environmental and Social Exclusion List (ESEL) and Environmental and Social Standards (ESSs) will apply to this Project. The Project has been placed in Category FI, because the financing structure involves AIIB providing a direct sovereign-backed loan to Turk Eximbank to be on-lent for emergency response to the recent earthquakes in Türkiye. The Environmental and Social Management System (ESMS) of Turk Eximbank follows the OECD common approaches, including a common list of illustrative category A and B projects and Environmental and Social Due Diligence (ESDD) that refers to IFC Performance Standards and World Band Group EHS guidelines.
The Project will finance activities (i.e., restoration of basic infrastructure services and reconstruction of basic or resilient infrastructure) related to emergency response to the recent earthquakes. Activities included in AIIB’s ESEL will not be eligible for financing. The project will further exclude any activities purposed for supporting the expansion of production, transportation, and use of oil and natural gas. Category A sub-project and higher risk Category B activities will be excluded. In addition, all sub-projects will be carefully screened against potential risk of land acquisition and involuntary resettlement risk under the E&S assessment model, and any sub-project that triggers ESS2 will be excluded.
The ESMS of Turk Eximbank includes (i) screening the proposed loans against its environmental and social (E&S) exclusion list, (ii) assigning an E&S categorization at borrower level and lending activity level, (iii) conducting an E&S assessment, (iv) monitoring E&S risks and impacts and (v) disclosing relevant ES information to stakeholders and (vi) reporting to its management accordingly. A Project Operation Manuel will be prepared for the Project to align the project ESMS practice with AIIB ESP and ESS requirements. The existing corporate level ESMS is materially align with AIIB ESP.
Women suffered disproportionately in the aftermath of earthquake disaster. All Project-supported activities will follow protocol to prevent gender-based violence. Turk Eximbank will allocate a portion of the funding to support women-inclusive enterprises. Turk Eximbank will also track sub-project level on women economic empowerment performance.
Turk Eximbank disclosed on its website the Environmental and Social Impact Policy, Climate Change Adaptation, and Mitigation Policy. Turk Eximbank has further disclosed the ESMS overview with detail ES guideline, Categorization, and ESDD approach. At the institution level, Turk Eximbank has published an annual sustainability report27 which is prepared in accordance with the Global Reporting Initiative (GRI) Standards requirements.
The ESMS of Turk Eximbank requires that it addresses third-party views, enquiries or concerns regarding its own E&S processes and outcomes, as well as E&S impacts and performances of its portfolio loans. Turk Eximbank has disclosed its External Communication Mechanism (ECM), which will be enhanced to meet AIIB’s ESP requirements. Turk Eximbank will require the sub-borrowers to establish Grievance Redress Mechanism (GRM) that are commensurate with the environmental and social risks of the sub-projects. Provision will also be made to inform Project-affected people and Project workers of their availability, including Turk Eximbank’s ECM and AIIB’s Project-Affected People’s Mechanism (PPM).
During Project implementation, Turk Eximbank will be required to maintain a comprehensive database comprising all relevant E&S information, and report to AIIB a summary of the E&S aspects and overview of the E&S performance of the Project’s portfolio annually. In addition, it is anticipated that AIIB will retain the right to review all sub-loans and conduct supervisory visits, including visits to the sub-borrowers, when it deems appropriate.
Home Projects Project Summary Project List Project Details Türkiye: Turk Eximbank Earthquake Response Project (Component B of the previously Türkiye: Turk Eximbank Green Infrastructure Support and Earthquake Response Project)
