Türkiye: TCDD Railway Maintenance Modernization Project

OBJECTIVE

To enhance rail infrastructure maintenance by modernizing track vehicles, adopting sustainable practices, and ensuring safe, reliable, and efficient operations across Türkiye serving as a regional logistic hub.

DESCRIPTION

The Project supports the modernization of Türkiye State Railways’ (TCDD) maintenance operations through the procurement of specialized machinery for track, overhead line, and seasonal maintenance across the national rail network.

In parallel, the Project will provide targeted training for TCDD personnel and assess digital readiness to ensure the effective integration of new technologies. These efforts will strengthen institutional capacity and support the long-term sustainability of Türkiye’s railway operations.

ENVIRONMENTAL AND SOCIAL INFORMATION

Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL), applies to this Project. The Project has been assigned a Category B classification considering the Project nature, existing location and scale, and advancement to the use of modern equipment that meets stringent emission standards. The Project’s anticipated environmental and social (ES) risks and impacts, if not avoided or reduced, are limited to the existing rail network (Project area), therefore these impacts are not unprecedented or irreversible, and can be managed through operational best practice, in accordance with ESS1 (Environmental and Social Assessment and Management) requirements.

Environmental and Social Instruments: As part of the Environmental and Social Due Diligence (ESDD), the Environmental and Social Management System (ESMS) and other available ES documents will be reviewed to assess their material consistency with AIIB’s ESP requirements. This ESDD will validate the effectiveness of the TCDD’s internal controls and capacity at managing ES risks and impacts associated with the Project’s activities. Identified gaps and/or areas for improvement vis-à-vis AIIB’s ESP requirements will be summarized in the Environmental and Social Action Plan (ESAP), as relevant.

Environmental Aspects. Anticipated key environmental risks/impacts include air pollution and noise from machinery operation especially in populated and sensitive areas. There is a potential for soil and water contamination from fuel and lubricants during machinery use and maintenance, and generation of solid and hazardous waste (e.g., oils and filters, used batteries, machinery components and obsolete equipment). Maintenance plans for the newly procured 95 machines will include provisions for battery handling and lifecycle optimization to reduce environmental impact. In addition, the proper recovery of equipment parts and disposal of scrap materials (such as through delivery to the Machinery and Chemicals Institute) will be reviewed to minimize the accumulation of solid and hazardous waste. The ESMS will be reviewed to verify project’s specific measures in mitigating and monitoring risks, ensuring environmental protection and the continued safety and mobility of train users. ES instruments will include an ESDD and an ESAP.

Social and Gender Aspects. The social risks/impacts for the Project are considered limited, given its focus on machinery procurement and the absence of direct construction works, land acquisition, resettlement or impacts on Indigenous Peoples. Major risks include potential labor violations within the supply chain, particularly during the production and transportation of machinery; risks related to labor and working conditions for TCDD staff and contractors operating the new equipment; the potential for job losses due to the increased maintenance efficiency; and gender- and vulnerability- related issues, such as lack of gender and social inclusion in Project benefits, as well as risks related to Gender Based Violence (GBV)/Sexual Harassment (SH) in the workplace. Any gaps or outstanding issues identified by ESDD will be addressed through targeted actions included in the Project ESAP.

Stakeholder Engagement and Information Disclosure. Stakeholder engagement will be carried out by the client to consult and disclose possible impacts and risks of the Project in a timely and transparent manner and considering the communication preferences and needs of each stakeholder group. Feedback and raised concerns are to be documented and integrated into relevant policies and regulations of the Project, including all ES instruments, during the entire Project cycle. TCDD will disclose ES Instruments in English, along with a summary in Turkish, on its official website, ensuring its accessibility and adaptability. Hard copies will also be made available in the Project areas. This documentation will also be timely disclosed on AIIB’s website.

Project Grievance Redress Mechanism (GRM). The Grievance Redress Mechanism (GRM) for this Project shall protect both Project-affected peoples and communities and project contracted workers from damages and violations, including gender-related issues as well as any negative impacts that the Project implementation may cause. The assessment of existing GRM and requirements for Project-level GRM will be discussed during the next stages. The information of established GRM and AIIB’s Project-affected People’s Mechanism (PPM) will be timely disclosed in an appropriate manner.

Monitoring and Reporting Arrangement. TCDD Project Implementation Unit will assume the primary responsibility for monitoring the Project's progress and ES performance. This monitoring will be informed to the Bank through the submission of regular and annual reports based on an agreed format and procedures. AIIB will conduct monitoring and supervision missions to the field twice a year. More details will be determined with the Client during the ESDD.