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 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 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 investment consisted of appraising technical and environmental information submitted by TAV and site visits by IFC staff. Environmental, health and safety (EHS) and social issues associated with this project include: Environmental, health and safety management systems, including environmental assessment; Construction impacts; Fuel/Hazardous materials storage and handling, including emergency response; Air emissions; Water supply; Stormwater drainage and effluent discharges; Solid and liquid waste management; Aircraft noise; Employee health and safety, including fire and life safety; and Airport land acquisition and resettlement.

TAV has presented plans to address these issues and to demonstrate that the operation of the Tbilisi airport will, upon implementation of the recommended measures contained in the environmental assessment documentation, comply with applicable Georgian environmental laws and regulations, relevant international norms, and World Bank Group policies and guidelines. Detail on each issue is provided below. EHS Management Systems. TAV plans to develop and implement an EHS management system (EMS) to ensure the operation’s performance is managed consistent with international standards and practices and risks are prevented. The EMS will include a written EHS policy, an organizational structure and responsibilities for compliance, written operating procedures, as well as procedures for monitoring the effectiveness of the program. The Company carried out an environmental assessment in order to establish existing environmental conditions and to identify the mitigation measures and other actions that will be necessary to meet these objectives. TAV will also investigate whether subsurface soil and groundwater beneath areas where fuel was stored and handled may have become contaminated. These previously contaminated areas will be defined and reported to the Ministry of Environmental Protection and Natural Resources of Georgia. TAV will recommend to the Ministry those areas where contamination should be remediated to prevent further environmental deterioration and protect the public health. The results of the environmental assessment established a series of recommendations for mitigation measures to be implemented during construction and operation, which, in turn will act as the focus for developing the EMS. Construction Impacts The potential environmental impacts from construction renovation and expansion activities include fugitive dusts, soil erosion, noise, waste management, and additional vehicle traffic movement. TAV, the contractors and subcontractors are expected to control these to acceptable levels through application of standard construction environmental controls and mitigation measures and the recommendations of the environmental assessment, which will be incorporated into the construction contract documents. Fuel/Hazardous Materials Storage and Handling The principal hazardous materials handled at the airport are aviation fuel and diesel fuel used for onsite power generation. Currently, there is an aviation fuel tank farm constructed and operated by BP under agreement with TAV. BP’s tank farm consists of above-ground aviation fuel tanks and truck loading and unloading areas provided with fully bunded concrete containment systems that prevent accidental spills from being released to the environment. All rainwater that collects within the bunded area is treated in oil-water separators prior to discharge. BP has in place appropriate procedures to minimize the risk of accidents from storing and handling fuel. Georgian Petroleum, a second aviation fuel contractor, is building another fuel tank farm at the airport. These facilities will also be provided with adequate secondary containment to manage accidental spills, and the operator will put in place appropriate procedures to prevent and respond to any spills. The airport stores diesel in above ground storage tanks to fuel the onsite generators that provide electric power for their operations. TAV will install impermeable concrete containment beneath the tanks and associated fueling truck loading and unloading areas to prevent future accidental leaks and spills from being released to the environment. TAV, in coordination with its aviation fuel contractors and with local government authorities, will develop emergency plans and procedures and include provisions for properly handling major accidents, fuel spills, and for explosions and fires. Appropriate emergency equipment will be provided, including fire fighting vehicles, ambulances and associated emergency equipment, and personnel will be trained in how to properly respond. Critical components of the emergency plans will be tested on a regular basis. Based on the meteorological records from Tbilisi, approximately 6-8 de-icing events per year are expected at TIA. The Company shall implement a dedicated de-icing area at the airport and ensure that the run off from deicing events is collected and disposed of in accordance with international practices. Air Emissions Diesel oil-fired onsite power generators are the principal fixed point sources of air emissions at the airport. TAV will be installing new, more energy efficient generation systems to replace the existing units. The new engines will be of recent design by reputable international manufacturers, and emissions will be consistent with the most current industrial practice for these relatively small-scale units. Low-sulfur content oil will be used to fuel the diesel engines. And, as recommended in the environmental assessment, the height of the exhaust stack for the power generators will be no less than 30 meters to minimize impacts on the ambient air environment. The overall pollution loadings from these sources are insignificant relative to the contributions from other sources in the Tbilisi air shed. Water Supply Water for the airport terminals and other buildings is supplied from two sources: non-drinking water for general use purposes – sinks, toilets, washing, etc. through connection to the Tbilisi municipal system; and bottled water exclusively for drinking needs. In addition, bulk water for aircraft is delivered by tanker truck. Quality of this aircraft water is monitored regularly to ensure compliance with Georgian and World Health Organization drinking water standards. Stormwater Drainage and Effluent Discharges The airport has stormwater drainage systems sufficient to manage the surface water runoff from the runways, aprons, car parks, maintenance and ground handling areas of the airport properties. To alleviate some roadway drainage problems improvements will be made within the framework of the expansion being planned. TAV will regularly inspect drainage works, and will clean and dredge them to remove the sediment that periodically accumulates. Stormwater drainage that becomes contaminated with petroleum hydrocarbons will be treated in an oil-water separator prior to discharge. All wastewater effluents from airport operations are discharged to the existing Tbilisi municipal sewerage network consistent with local requirements. Solid and Liquid Waste Management Solid wastes generated at the airport are collected by the local government authority and disposed off-site at the municipal landfill in accordance with local requirements. The authority collects the wastes from specifically designated waste storage areas managed by TAV. The relatively small amounts of hazardous liquid wastes generated – primarily waste oils from maintenance operations – are stored in drums and periodically collected by the diesel fuel suppliers and recycled commercially. TAV will implement the waste management recommendations of the environmental assessment. TAV will also investigate and implement, where possible, opportunities to recycle and/or reclaim other solid wastes, such as plastic, paper and metal wastes generated at airport going forward. Aircraft Noise The civil aviation authority (SAKA) is assessing aircraft noise within the airport territory and at surrounding communities with a view toward establishing baseline levels, particularly at identified sensitive receptors. TAV has not received any complaints from communities living near the runways of the existing facility. Notwithstanding, TAV will implement appropriate mitigation measures for reducing noise where regulatory levels are exceeded, if necessary, for these sensitive receptors. The Company will also establish a mechanism for recording and responding to complaints that might be received in the future. Employee Health and Safety TAV is developing and implementing appropriate safety and security programs and procedures consistent with ICAO standards. Personnel working on airfield areas are provided with hearing protection and fluorescent outer wear, and are trained on the hazards, safety procedures, first aid, and emergency response plans associated with their tasks. All public buildings are (or will be) designed and constructed to international fire and life safety standards to ensure the safety of all occupants in case of fire. Airport Land Acquisition and Resettlement The land on which the airport is located is the property of the Government of Georgia, and is being made available to TAV through the BOT Agreement. There are no known ongoing private ownership claims, nor are any expected. There are no people currently living on or using the land comprising the airport property for their livelihoods.

This ERS contains the summary of IFC's environmental and social review for the project. For more information regarding project environmental documentation prepared by the sponsor, contact: Mr Ersel Goral General Manager TAV Urban Georgia LLC Tbilisi International Airport Tbilisi, Georgia Tel: +99532920958

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

IFC will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering: (i) the status of implementation of mitigation measures contained in the environmental assessment documents and (ii) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted.