HKA is a family owned company which was established in 2008. HKA is ultimately held by Nahum Family (55%), Mr. Inan Kirac (34%), Hakan Alkan (5%) and Erhan Gencer (5%)

Total Project cost is estimated at US$226m, including costs associated with existing operations. The proposed IFC investment is US$30-35 million A Loan for IFC’s own account; up to US$20 million of equity/quasi-equity investment by IFC; up to US$100 million syndicated B Loans and Parallel Loans.

70.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity	20.0

* These investment figures are indicative

The Company’s operational plant is located in Pamukova, Sakarya (Turkey, Marmara Region). The planned facilities will be located in Bilecik, (Turkey, Marmara Region), Soke, Aydin (Turkey, Aegean Region) and Odemis, Izmir (Turkey, Aegean Region).

The Company’s headquarters is located in Istanbul.

(i) Being among the first of what is expected to be a series of solid waste concessions in Turkey, the Project will introduce a market based structure and establish a contractual basis for the provision of solid waste management services by the private sector in Turkey
(ii) The Project will contribute towards achieving waste management targets in Turkey''s EU accession national program
(iii) The Project fundamentally addresses our drivers of environmental care and agricultural growth by: a) reducing burden on municipalities by processing 200,000 tons pa of municipal solid waste and thereby freeing up space from landfills which have limited capacity, b) widening the use of an organic product with soil enriching nutrients, c) supporting smallholders and large farmers to maximize yields and income through increasing availability of a highly productive fertilizer, d) reducing Turkey''s dependence on fertilizer imports e) prevention of underground water pollution.
(iv) The technology to treat waste reduces GHG emissions carbon footprint through the prevention of methane and carbon dioxide release caused by improperly disposed waste and displacing fossil fuel based electric generation. In addition, the use of organic fertilizer displaces the use more carbon intensive chemical fertilizer derived from fossil fuel. The Project meets the criteria for an IFC Climate Smart investment.
(v) Renewable base load electric energy generation displacing in part fossil fuel based generation

(i) Strong signaling impact: In line with the move towards an EU compliant solid waste management strategy, and given the limited private sector involvement in Turkish solid waste sector, successful transactions in this field would constitute a precedent for other municipalities who would benefit from implementing proven PPP models. IFC''s involvement in this transaction will serve as a strong vote of confidence to municipalities, investors and other financing institutions
(ii) Mobilization: IFC''s involvement in this Project, which uniquely combines solid waste and fertilizer know-how, would allow other financing institutions to offer terms that would make the project viable
(iii) Ensure transparency and compliance with IFC''s environmental and social standards

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Direct Employment (#) - Operations and Maintenance	Employment (#)		Not Available	Not Available	Not Available
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#)		Not Available	Not Available	Not Available
Payment to Government	Annual Payments ($M)		Not Available	Not Available	Not Available

This project has been classified as a Category B project as the environmental and social risks (E&S) and its potential impacts are expected to be limited, generally site specific, and can be avoided or mitigated by adhering to generally recognized performance standards, procedures, guidelines or design criteria.



The key E&S issues include: adequate assessment and management of identified risks and impacts including establishment and implementation of an associated EHSS system compliant with IFC’s Performance Standards; obtaining required permits and licenses; stakeholder engagement, occupational health and safety during construction and operations; emission control; solid and liquid waste management; management of hazardous materials; community security, health and safety.



Although all land plots are purchased on a willing seller willing buyer basis and/or provided by the applicable municipality, PS 5 Land Acquisition and Involuntary Resettlement is considered applicable as there will be government managed land acquisition for the energy transmission lines that will supply energy to the Bilecik project.



None of the project activities are located within the vicinity of a sensitive environmental area, thus PS6: Biodiversity Conservation and Sustainability is not considered applicable. There are no indigenous people in the host country, thus PS7: Indigenous Peoples is not applicable. Based on Environmental Impact Assessment’s (EIA’s) for the various activities there is no known historical and/or cultural heritage within the Project boundaries, therefore PS8: Cultural Heritage is not considered applicable.



Key environmental and social (E&S) issues and relevant mitigation measures are described in detail in the paragraphs below. In addition, the client will implement an Environmental and Social Action Plan (ESAP) to achieve compliance with IFC’s Performance Standards (PSs).

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.