PROJECT

Projects

Environmental & Social Review Summary

Project Number

44855

Company Name

MERSIN ULUSLARARASI LIMAN ISLETMECILIGI ANONIM SIRKETI

Date ESRS Disclosed

Jul 18, 2023

Country

Turkiye

Region

Central Asia and Turkiye

Last Updated Date

Jul 27, 2024

Environmental Category

A - Significant

Status

Pending Approval

Sector

Port and Harbor Operations

Industry

Infrastructure

Department

Regional Industry INF MCT

Project Description

 Mersin Uluslararasi Liman Isletmeciligi A.S. (“MIP” or “the company”), https://www.mersinport.com.tr/, is owned by a consortium of PSA International, one of the largest global container terminal operators, IFM Investors, a large fund management company from Australia and Akfen Holding, a large Turkish infrastructure investment company. In 2007, the government awarded MIP the right to operate the container terminal for a 36-year period. The Mersin port is withing the urban area of the city of Mersin (around1.9 million inhabitants) in the southeastern part of Mediterranean coast of Turkey and has been operating since the 1950s.

 

MIP has a total area of 112 ha and includes 21 berths for containers, dry bulk and liquid cargo. MIP has a number of tenants, including a vegetable oil company, grain storage company, soda ash facility, and a petrol station. All areas of the container terminal come under the responsibility of MIP. MIP also offers ancillary services including the packing of dry bulk cargo and weighing services, as well as regular ferryboat services carrying passengers between Mersin and Northern Cyprus.

 

The proposed IFC investment is an A loan of up to US$ 50 million to support the expansion of the container terminal to serve larger-size container ships and increase the capacity from the current 2.3-2.6 million twenty-foot equivalent unit (TEU) particular average (p.a.) to 3.6 million TEU p.a. The investments entails: i) construction of an 368 meter quay for the extension of the existing berth and an office building; ii) 28 ha container yard; iii) new cruise terminal; iv) dredging within the port to enable large vessels to dock and along the access channel (approximately 3.3 million m3); and v) superstructures including cranes and other equipment (the “project”). The project will be constructed within MIP’s existing footprint.

 

MIP is in the process of contractor selection and the project’s construction works are planned to commence by the last quarter of 2023. The berth and new cruise terminal are expected to be operational by the end of 2025.

 

In 2013 IFC provided a loan to MIP to issue an Eurobond (IFC project #33943 - https://disclosures.ifc.org/project-detail/ESRS/33943/mersin-port) and in 2019 a follow-up financing package including refinancing of existing bond (IFC project #43107 - https://disclosures.ifc.org/project-detail/ESRS/43107/maple). The E&S performance of these previous projects has been satisfactory.

 

 

Overview of IFC's Scope of Review

IFC’s project appraisal included (i) the assessment of the company’s existing environmental, health and safety and social (EHSS) management system, organizational capacity, performance and plans for the expansion project; (ii) the assessment of the potential EPC’s capacity and systems; and (iii) review of  key EHSS documents including: local Environmental Impact Assessment (EIA); E&S gap analysis report, Social Impact Assessment (SIA); construction environmental and social management plans (CESMP), project Stakeholder Engagement Plan (SEP); a Dredging Impact Assessment (DIA); a Critical Habitat Assessment (CHA) and corresponding Biodiversity Management Plan (BMP); a Traffic Impact Assessment (TIA); a Supplemental Air and Noise Emissions Impact Assessment (ANEIA); a Supplemental Marine Impact Assessment (MIA); a Cumulative Impact Assessment (CIA); Climate Risk Assessment (CRA); and a Livelihood Restoration Plan (LRP), all of which were developed for the project by experienced consultants. IFC’s appraisal was supplemented by an environmental and social (E&S) due diligence conducted by a third-party consultancy firm for the benefit of the lenders.

IFC E&S team conducted a physical site visit on June 20-23, 2022. During the visit, the team interviewed the project management team, local community representatives (fishermen, tour boat operators and district administrator (mukhtar)), MIP’s senior management, and representatives of corporate communication department and Human Resources (HR).

          

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
00_SIP_ENG.pdf
04_1_Marine_Ecosystem_Evaluation_Report_ENG.pdf
06_CESMP_ENG.pdf
07_SIA_ENG.pdf
08_SEP_ENG.pdf
22532_Son_Sekli_Verilen_ÇED_RAPORU.pdf
LRP_ENG.pdf
NTS_ENG.pdf