European Bank for Reconstruction and Development Invests in Turkey's Aviation Sector

Strategic Insights -

The European Bank for Reconstruction and Development (EBRD) has partnered with the International Finance Corporation (IFC) and the Asian Infrastructure Investment Bank (AIIB) to provide a 140 million capex bridge loan to Fraport TAV Antalya Yatirim, Yapim ve Isletme (FTA) in Turkey. This financing package is expected to enable the completion of Antalya Airport's new infrastructure, while ensuring improvements in energy efficiency and green investments. As part of the transaction, FTA has committed to obtaining the Level 4 Transformation accreditation under the Airport Carbon Accreditation scheme, and to inclusive procurement to increase the share of women within its contractor workforce.

Key Takeaways:

  • The EBRD's investment of 140 million will enable the completion of Antalya Airport's new infrastructure, including LEED certified terminals and a solar power plant.
  • The airport is expected to achieve Level 4 Transformation accreditation under the Airport Carbon Accreditation scheme, putting it in the top tier of airports globally in terms of carbon management and stakeholder engagement.
  • FTA has committed to inclusive procurement to increase the share of women within its contractor workforce.
  • The airport is a key part of Trkiye's infrastructure needed to grow the tourism sector and the economy, with the region's tourism industry expected to benefit from increased passenger capacity.
  • The loan will contribute to the capacity investments in the airport, which will serve Antalya for another 25 years of growth.
  • Fraport has been actively involved in the project for over two decades, with the airport's passenger numbers increasing from fewer than 5 million per year to over 30 million in 2022.

Statistics:

  • The EBRD's investment of 140 million is part of a financing package that includes funds from the IFC and AIIB.
  • The airport's greenhouse gas emissions are expected to be reduced through the completion of the new infrastructure and green investments.
  • FTA has committed to increasing the share of women within its contractor workforce through inclusive procurement.
  • The airport's passenger capacity is expected to increase with the completion of the new infrastructure.
  • The EBRD has invested nearly 17 billion in Trkiye's economy since 2009.

Sources:

  • EBRD press release, no date
  • Global Data Point, "EBRD Invests in Turkey's Aviation Sector" (2022)
  • FRAPORT AG Frankfurt Airport Services Worldwide (2022)
  • Asian Infrastructure Investment Bank (2022)
  • International Finance Corporation (2022)