IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the Environmental Review Summary (ERS) has been made available to the locally affected community. The SPI must also be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental, social and cultural impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical, environmental, social and cultural information submitted by the project sponsor, as well as site visits to the Kusadasi Port and to the nearby town of Selcuk where Ephesus is located. The following potential environment, health and safety, social and cultural impacts of the projects were analyzed. - Pollution control and waste management; - Fuel handling and emergency response; - Employee health and safety; - EHS management systems; and - Cultural and archeological heritage.

Ege Ports has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with the EHS and social requirements and Turkish country laws and regulations and the IFC environment, social and cultural policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by Ege Ports is summarized in the paragraphs that follow. - Pollution Control and Waste Management: At present, there are no facilities to receive wastewater or other liquid waste (e.g. oil) generated by cruise ships. However, the Port collects dry solid waste/garbage from the ships for a fee - it is estimated that about 70% of the cruise ships visiting Kusadasi discharge solid waste (on average about 10m3 per cruise ship). This amounts to about 3,000 m3 of dry solid waste annually which is trucked to a municipally owned and operated landfill 12 kms north of the town for disposal. There is a limited amount of waste separation at the landfill with metals, glass, and some waste paper sent to recyclers. Kusadasi Port can also provide cruise ships with fresh water (about 5 tonnes per hour) which is provided for a fee from the municipal fresh water system. Wastewater from the existing terminal building is discharged to the Town of Kusadasi's municipal sewer system. There are no air emissions from the current port facilities. The new terminal facility (to be constructed as part of the proposed project) will include standby diesel powered generators which will comply with IFC air emission requirements. Sewage from the new terminal building will also be discharged to the municipal sewer system. Currently sewage in Kusadasi is collected and discharged into the Aegean Sea without wastewater treatment through a deep offshore outfall. Kusadasi municipal officials are planning to upgrade sewage management by installing secondary-level sewage treatment within the next few years. Ege Ports will coordinate its sewage management efforts within the context of these regional government plans to ensure that wastewaters generated by the terminals do not contribute additional significant pollution loads to the Sea, and are managed according to good international practices. - Fuel Handling and Emergency Response: Through arrangements with local contractors, Ege Ports can provide fuel bunkering services to ships, if given 48 hours notice. Ege Ports will prepare a contingency plan for emergencies (e.g. fire, earthquake, oil spill, security problems). This plan will be coordinated with the local GOT authorities as well as those of the Town of Kusadasi and will be reviewed by IFC prior to finalization. The plan will include appropriate procedures to minimize the risk of accidents from handling fuel, as well as associated emergency equipment and training of personnel in response activities. It is expected to be in place by June 30, 2004. - Employee Health and Safety: The Ege Ports’ occupational, health and safety (OHS) program will meet both GOT and IFC requirements. The company recognizes the need for written policies and procedures for all human resource issues, including training, performance appraisal, and OHS requirements, and has committed to have these written policies and procedures in place by June 30, 2004. - EHS Management Systems: Ege Ports is currently seeking ISO 9001 - 2000 (Quality) certification for the Kusadasi Port. It is expected that the ISO 9001 - 2000 certification will be achieved by May, 2004 at the latest. Ege Ports has also committed to achieve ISO 14001 (Environmental Management) and OHSAS 18001 (Occupational Health and Safety) certification ISO 14001 by the end of 2006. Achieving these certifications will not only improve Ege Ports’ quality and EHS performance but can also be referenced to considerable advantage in their marketing material - a major plus in the very competitive US and European cruise markets. Cultural and Archeological Heritage: - Kusadasi is known as one of the most attractive cities in the Aegean region, and is only about 20 kms from the historic Greco/Roman City of Ephesus, the site of the Temple of Artemis (one of the wonders of the ancient world), the Basilica of Saint John (where Saint John was buried), the Isa Bey Mosque and the Museum of Selcuk. In the nearby hills lies Meryemana, reputed to be the place where the Virgin Mary died and a place of pilgrimage for Christians of increasing importance. The area has numerous other historical and cultural sites. The area is the most richly endowed area in terms of cultural and historic sites in Turkey, outside of Istanbul. In view of the cultural and archeological significance of the region, Ege Ports is working with a range of stakeholders to improve the tourism experience while ensuring that these sites, the crown jewels of the region and without equal anywhere else in the world, are protected and maintained. As part of this investment activity, IFC will seek ways to assist the company further in promoting sustainable tourism.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable IFC environment, social and cultural policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.

IFC will evaluate the project's compliance with the applicable Turkish and IFC environmental, health and safety, social and cultural requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering the ongoing performance of project-specific environmental, health and safety (EHS), social and cultural activities. Periodic site supervision visits will also be conducted.