While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS1: Social and Environmental Assessment and Management Systems PS2: Labor and Working Conditions PS3: Pollution Prevention and Abatement PS4: Community Health, Safety and Security No project-related land acquisition or involuntary resettlement is required given that the Project will be built within the existing Port. No protected areas or sensitive natural habitats are to be impacted by the Project. There are no known indigenous peoples’ traditional or customary lands or Cultural Property in the Project’s direct area of influence. Hence, PS5 (Land Acquisition and Involuntary Resettlement), PS6 (Biodiversity Conservation), PS7 (Indigenous Peoples) and PS8 (Cultural Heritage) do not apply for the purpose of this review.

The key environmental, social and occupational health & safety issues associated with this investment include: Environmental and social organization and management system Labor and working conditions Occupational Health and Safety Emergency response, life & fire safety, spill prevention measures and response Disposal of effluent and solid waste Noise Oil and Hazardous material storage and handling Handling and storage of dangerous cargoes Ship support operations such as sewage disposal, bilge and ballast waste water disposal and fueling services) Interaction with the surrounding communities relating to traffic and emergency preparedness and response. The information about how these potential impacts will be addressed is summarized in the following sections of this Environmental and Social Review Summary (ESRS) and in the Action Plan agreed with the Company. The Project has limited potential adverse environmental and social impacts, and those that do exist are site-specific and can be easily mitigated. This investment is therefore a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. Existing and proposed measures to manage and mitigate these risks are described below.

PS1: Social and Environmental Assessment and Management Systems Ege Gubre, the company which owns the port, has a comprehensive Environmental Impact Assessment (EIA) report for port and pier construction identifying potential environmental and social impacts, and has in place plans and procedures to manage these impacts, ensuring compliance with host country environmental and social regulations and IFC’s Social and Environmental Performance Standards. The EIA includes management procedures that cover the port construction and operational activities in the following areas: (i) air ambient quality, (ii) in-land and marine water quality; (iii) noise, (iv) sustainable use of water and power; (v) integrated solid waste management; (vi) management of debris from construction; (vii) fauna and flora; (viii) landscaping; (ix) traffic management; (x) safety of small fishing and tourist boats; (xi) community engagement and grievance redress; and (xii) community development. The report was approved by the Ministry of Environment on February, 17, 2006. Ege Gubre is also certified as compliant with the International Ship and Port Facility Security (ISPS) Code. IFC’s project with TCE Ege – i.e. the supply of equipment - does not require a separate Environmental Impact Assessment according to the host country legislation. Possible environmental and social impacts of Project have been assessed in “EGE Container Terminal Preliminary Design Project Report (prepared by TCB Engineering, August 2007)”. Company reported that it follows MARPOL regulations for its operations. Environmental and Social Management Systems of the port are currently managed by the port owner company Ege Gubre. The Port Service Chief of Ege Gubre acts as OHSE Manager and executes systems. TCE Ege does not have a systematic OHSE (Occupational Health Safety and Environment) system. The Human Resources Manager of TCE Ege has been also appointed as OHSE Coordinator temporarily. TCE Ege will hire an OHSE manager and integration into existing port management systems will be completed in 2010. The Project’s environmental, health and safety issues during purchasing, installation and operation of equipments will be managed under the port’s integrated OHSE systems. TCE Ege will prepare health, safety and environment procedures, and related instructions and forms and will train all employees regarding these procedures. Environmental and health & safety issues will be regularly monitored and reported to TCE Ege Management. The installation and construction contractors for works related to TCE Ege will be contractually required to follow TCE Ege environmental and health and safety procedures and comply with local environmental and social regulations, and are continuously supervised by TCE Ege OHSE Department. PS2: Labor and Working Conditions HR Policy: TCE Ege will establish a documented Human Resources (HR) Policy in line with IFC Performance Standards and Turkish Labor Law. The generic contract of an employee clearly defines the rights and obligations of employees and employer; compensation and benefits; working hours, overtime and leave policy; occupational health and safety policy, among others. According to the local labor law, all employees must be covered by health insurance and receive copies of their contracts upon being hired. Although workers are not currently unionized, TCE Ege will allow workers to form or join worker’s organizations and to bargain collectively. The contractors are contractually required to comply with local labor laws. Neither TCE Ege nor its Contractors engage in harmful child labour or forced labor. Currently 45 employees work for TCE Ege Operations (including site employees) and the number will increase with increasing volume. TCE Ege reported that HR Department gives priority to hiring local people when skills match available jobs. Detailed performance evaluation system is in place. Company reported that OHSE will be also evaluation criteria in the performance management system. Retrenchment: The company does not have any retrenchment plans currently. Grievance mechanism: The HR department confirmed that there is an open door policy and informal grievance mechanism in place. TCE Ege will place a number of grievance boxes at locations throughout the working areas, to allow employees to submit suggestions or complaints and after operations are fully started and number of employees increase, a more systematic feedback mechanism will be developed. The company has had no labor conflicts or community complaints to date. Occupational Health and Safety: Procedures for systematic management of Occupational Health and Safety will be established and necessary trainings will be given in line with OHSAS18001 and Turkish legislation. Nevertheless, all employees have fire safety training and 20% of them have first aid training as required by Turkish Legislation. Crane and other equipment operators have licensed in accordance with local legislation. The Health Unit of Ege Gubre, comprising a doctor, nurse and health officer also serves TCE Ege employees. There is a fully equipped ambulance available for use on site. As the total number of employees gets equal or higher than 50, an occupational health and safety committee will be established in line with Turkish legislation. All employees, direct and indirect, will be provided with training and personal protective equipment (PPE) relevant to their assignment. An effective accident reporting system including “near misses” will be established. Pedestrian access to the terminal is controlled for safety purposes. Transfers within the terminal will be performed by means of Terminal vehicles which will collect personnel from a control point near the Offices building and will transport them to the relevant zone where they will perform their work. There are various parking spaces for vans suitably distributed in the different areas. In addition all pedestrians are provided with bright overalls to increase their visibility before entering the site. Life and Fire Safety: Fire systems and all related equipment like fire extinguishers, hydrants and pumps are under the control of and regularly maintained by Ege Gubre. Emergency plans and drawings are available at all working places and drills are performed periodically in coordination with Ege Gubre. PS3: Pollution Prevention and Abatement: Given the nature of container handling and storage it is not expected that TCE Ege will generate significant amounts of gaseous emissions or effluents. Power consumption is expected to be moderate and will be supplied from the national grid, with 2 back-up generators with a combined capacity of 500 kVA each. Greenhouse gas emissions associated with this project will be negligible. The water required for the administrative buildings and limited operational activities will be sourced from the municipal water system. Air Quality Control: As mentioned above, gaseous emissions during operations will be minimal. TCE Ege will develop air quality management procedures for application to land-based activities which include: All transfer equipment (trucks, cranes etc) will be in good condition and are required to comply with local emissions certificates and continuous maintenance of equipment, engine idling will be encouraged during on and off-loading activities. Liquid and Solid Waste Management: TCE Ege’s offices and container yard will have in place wastewater systems which discharge to waste water treatment plant of Ege Gubre. Storm water collection system is connected to existing sedimentation tank. Vehicle maintenance and other activities that involve use of grease or oils will be conducted at an onsite location that is equipped with wastewater collection and pre-treatment equipment (i.e. grease and oil traps). TCE Ege will prepare procedures for handling and proper dispodal of liquid and solid wastes.  Ege Gubre has a bilge and ballast waste water treatment plant which is composed of biological and chemical treatment plant however for the time being it’s not operating since there is no demand. The company reported that, during operation, liquid and solid wastes generated by ships (i.e. paper, bilge waste, ballast water, sewage, and used oils) are under the responsibilities of shipping agencies (Turkon and Maersk). In accordance with MARPOL guidelines and under the Port Authority supervision, a Pollution Auditor will be present during these operations. TCE Ege will require these third parties to dispose and treat of all waste in accordance with municipal requirements at designated sites and in line with Turkish Environmental Laws. All operations generating solid wastes (construction and operations) must comply with Turkish Environmental Law. TCE Ege is not expected to generate a significant amount of solid waste during operation, and any solid waste generated (i.e. office paper) will be sent to recycling companies. All solid waste that cannot be recycled will be delivered to the municipal landfill by licensed waste management companies. Sources and final disposal of solid wastes will be registered and monitored on weekly and monthly basis. Special procedures will be prepared to manage hazardous wastes such as spent solvents, oily rags, empty paint cans, chemical containers, and used lubricating oils which will be disposed of by a specialized waste disposal company. Noise: Noise calculations have been included in EIA report of Ege Gubre. The noise level will be about 39.29 dBA in the 1 km perimeter of project premises located in an industrial area at maximum capacity operation and is negligible. Emergency Preparedness and Contingency Plan: Ege Gubre has a risk assessment and emergency planning for port against marine pollution which has been prepared by an accredited consultant company (TRSIM Mühendislik Danismanlik Egitim Yazilim Sanayii ve Ticaret Ltd. Sti.) in line with Turkish legislation. Company reported that the report has been submitted to Ministry of Environment on 12.06.2008 and still waiting for approval because of the updating process on legislation according to EU directives. The report composed of an introduction, definition and location of facilities, existing environmental characteristics of impact area, risk assessments and modeling, emergency resources: people, equipment, vehicles, emergency organization, logistics and communication, reporting, community affairs management, communication means, waste management, safety and protection of employees, rehabilitation plan, equipment safety data, training and drills, legislation, cost analyses and insurance, petroleum and chemical pollution and appendices. All activities in this plan has been contracted to a licensed private company by Ege Gubre. Management of Hazardous Materials (Hazmats): During operations it is expected that handling and storage of hazmats will be only an incidental part of TCE Ege’s activities and that a minor fraction of the total containers handled will be considered dangerous. TCE Ege will not handle or store bulk cargo or oil or liquid fuels. The port operators have a Hazmat plan. Protective equipment and training for hazmats management will be provided to employees. TCE Ege will define a segregated area to store and handle hazmats and dangerous cargo that must be compliant with local requirements and internationally recognized standards and provisions on this regard. For the control of potential spills by accident or breakage of containers with dangerous materials and in general with IMO (International Maritime Organisation- International Convention for the Prevention of Pollution from Ships) codification, a basin will be built for the positioning of these containers and to facilitate the controlled collection of spilled product. According to Company’s plans the basin will be placed in Western side of container yard area 1.2.A. Constructively, it involves an area with the option to place 40’ container or two 20’ containers and a perimeter pit for the whole, properly insulated and protected, with the capacity to store the maximum product spilled by the container(s). For the protection against the effect of rainwater and its potential problems or incompability with certain chemical products, Company will construct a mobile roof which can be extended/collected depending on the necessity and which will protect the containers. PS4: Community Health, Safety and Security Community Health & Safety: No significant risks or impacts on community health and safety are expected as result of project activities, and those that were identified are being mitigated through the plans described in PS1 and PS3. The primary risk to community health and safety could be associated to traffic safety by an increased volume of truck traffic during the operation phase. The company will have a Traffic Management Plan that require a close coordination with local traffic authorities and traffic signs around the Port. Prior to entrance of trucks in to the terminal to prevent the formation of queues on the public road, TCE Ege is currently conditioning a truck waiting area for the trucks to wait on a standby basis. The area is located in the South of the public road and slightly to the West of the truck entrance to the terminal.TCE Ege has a scheduling system that will allow specific hours for trucks to pick-up or deliver cargo to minimize congestion at the terminal gate. Security Personnel: TCE Ege security is currently managed Ege Gubre’s Security department. The guards receive training on emergency and security procedures and on how to respond commensurate with the risk or security issue at hand. As required by local law, the private security guard are certified and supervised by government (Private Security Law No: 5188). There is constant closed circuit television coverage of the port area.

The terminal is located within an industrial zone with no nearby communities. TC Ege was not required to undertake an Environmental Impact Assessment or associated public consultation under Turkish regulations due to the small size of its project. However Ege Gubre, the terminal operator, has conducted an EIA which, by law, included public consultation relating to the port development as a whole. The EIA prepared by Ege Gubre for the terminal contains a stakeholder engagement plan to ensure that key stakeholders in the area are kept informed about port development and are able to raise any concerns with Ege Gubre, the operator.

The ESRS and Action Plan documents can also be viewed at: TCE EGE Konteyner Terminal Isletmeleri A.S. 25. Cadde No:2 Cakmakli 35801 Aliaga Izmir Turkey Telephone: 232-625-1344 Fax: 232-616-1284 Website: www.tceege.com