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 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, health and safety (EHS) and social 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, occupational health and safety information submitted by the project sponsor as well as visiting Intercity’s facilities in Istanbul. The following potential environment, health and safety impacts of the projects were analyzed: - The compliance of Intercity with both Turkish and IFC environmental, health and safety (EHS) requirements; - The commitment of Intercity to quality and to international performance standards including ISO certification; - The commitment of Intercity to their labor force and to the community.

The project sponsor, Intercity, is currently addressing these impacts to ensure that the project complies with the environmental, occupational health and safety requirements of Turkey as well as IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts are currently being addressed and will be addressed in the future by Intercity is summarized in the paragraphs that follow. - Compliance with Turkish and IFC Environmental, Health and Safety (EHS) Requirements: Intercity currently has three service centers (Istanbul, Ankara and Izmir), with a fourth service center planned for Adana, to service their fleet of cars and light trucks. All service centers are located in industrial zones and have all the required operating permits. The main environmental issues with these service centers are the collection and disposal of waste oils, old tires, and wastewater and the operation of the paint shops. Waste oil is collected and safely stored in properly marked containers. At regular intervals the oil companies collect this used oil which is sent to licensed oil recyclers for reuse/recycling. Similarly, as required by the Government of Turkey’s recycling laws, old tires are collected by the tire manufacturers and are sent to licensed recyclers. Water is supplied to the service centers by the municipal systems. The major water use is for washing cars – Intercity uses no chemicals for car washing (i.e. cars are only rinsed). The wastewater from the service centers is filtered onsite before being discharged to the municipal sewer systems for further treatment prior to discharge to the environment. Each service center has a paint shop which is designed and uses paint products that comply with EU EHS requirements (e.g. water based paint, fully enclosed system, ventilation system with associated pollution control for air emissions). Solid waste from the service centers is collected and properly stored onsite for regular collection by the municipality and disposal in their licensed landfill facilities. - Quality and ISO Certification: Intercity has a very strong commitment to quality, to the environment, and to safety. Intercity has achieved ISO 9001 (Quality) certification from the British Standards Institute (BSI). The company purchases brand new cars and light trucks for their leasing business, with 50% of the cars being diesel powered. Intercity has an active program to educate their consumers on the environmental and financial benefits of diesel powered cars – less maintenance, less fuel use and thus less polluting. - Driver Safety: All customers of Intercity as well as their employees are required to attend a 1 day course on safe driving. The course has a number of classroom lessons before the students are taken to a local race track for the practical part of the course. It is expected that this course will substantially reduce customer accidents and thus insurance premiums. Employees are required to take this course every year and no employee is hired if they have ever had a major car accident. Car accidents and unsafe driving are major problems in Turkey and Intercity has developed a sensible and pragmatic approach to this problem. - Labor and Community Issues: Intercity is a young, dynamic and innovative company in a fast growing business. Their focus on quality and safety is consistent with the best international practice. Employees are provided with a very productive and safe work environment with frequent training on new techniques and technologies. Employees also receive an excellent salary and benefits package with additional educational resources provided for their children.

This ERS contains the full environmental, occupational health and safety documentation prepared for the project.

Accordingly, IFC concludes that the proposed project currently meets the applicable Turkish EHS requirements and IFC environment and social policies and the environmental, health and safety guidelines.

IFC will evaluate the project's compliance with the applicable Turkish and IFC environmental, occupational health and safety 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 activities. Periodic site supervision visits will also be conducted.