The Project sponsor is Yapi Merkezi, which is privately owned by the Arioglu, Anadol and Aykar families. The construction and concession businesses are the main business lines of the Company. YMI is one of the leading construction companies in the field of transportation specializing in constructing rail systems including tunnels and bridges. YMI has operations in eight different countries including Ethiopia, Tanzania and Turkey.

Total Project cost is expected to be US$100 million. The proposed IFC investment is a US$75 million A Loan for IFC’s own account and US$25 million of IFC B Loan or a Parallel Loan.

The proposed investment is planned to be used for working capital purposes for the existing projects in Algeria, Ethiopia, Morocco, Saudi Arabia, Tanzania,  Turkey and new business opportunities.

This is a category “A” project according to IFC’s Policy on Environmental and Social Sustainability in consideration of the inherent potentially significant and diverse environmental and social risks related to the sector where YMI operates, involving the construction of several greenfield linear infrastructure projects in the context of a growing portfolio of countries of operations.  The key issue associated with this proposed investment is the potential involvement of the company in future projects with high E&S risks in which YMI, as an EPC contractor, may have limited control. These include risks and impacts potentially associated with large rail system projects where the company may be involved, particularly in instances where project construction activities may be located in areas posing significant environmental/biodiversity and/or social concerns. Therefore, a primary mitigation is the capacity and ability of YMI’s at both corporate and project level to consistently implement a robust E&S screening process for each prospective project, that will assure that project opportunities and future activities are screened for high E&S risks and, if not screened out, undertaken consistent with IFC PSs. 

Typical issues which can be directly mitigated and managed by the company during construction of projects include fair, safe and healthy working conditions for direct and contract employees; handling of hazardous materials, management of waste, wastewater and construction nuisances (such as noise, vibration and dust), community safety and road safety, and engagement with affected communities in collaboration with local authorities and the project’s developer.