Project Sponsors are TAV Havalimanlari Holding A.S. (“TAV,” 85 percent) and Kazakhstan Infrastructure Fund C.V. (“KIF”) managed by VPE Eurasia GP Limited (15 percent).

TAV is a leading airport operator established in 1997 and currently has 14 airports in its portfolio. TAV has a diversified portfolio regionally, with business areas in (i) airports, (ii) duty free, (iii) food and beverage, (iv) ground handling and (v) other (commercial area allocation and lounges, airport IT services, security). TAV’s major shareholder is Aéroports de Paris (46.1 percent), other shares are free-float (44.5 percent), owned by Tepe Insaat Sanayi A.S. (5.1 percent) and other minority shareholders with less than 5 percent share.

KIF is a Kazakhstan-focused private equity infrastructure fund, managed by VPE Eurasia GP Limited, which is a special purpose vehicle 100 percent owned by VGL Limited (the holding company for VPE Capital). VPE Capital is a CIS-focused private equity fund and asset manager, presently managing two separate private equity funds: the VPE Russia Fund and KIF.

Total Project Cost is estimated to be around USD 737 million, including up to USD 415 million of acquisition cost, more than USD 200 million of capital expenditures, and other costs. The Project is envisaged to be financed through a combination of equity, debt and operational cash flows.

The Project involves a senior loan of up to USD 150 million from IFC’s own account, a senior syndicated loan of up to USD 100 million  and a senior loan of up to USD 50 million from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program (“MCPP”). IFC may also provide interest rate swaps.

The Project is located approximately 15 kilometres northeast of Almaty, Kazakhstan. The Project is building up on the existing site and will not result in increased footprint of the airport boundary.

Key E&S issues reviewed at appraisal included health and safety of surrounding communities, including noise impacts from ground and aircraft operations, and airport operation safety; emergency response and LFS for existing and new terminals; impacts on cultural heritage associated with the impact on the historical VIP terminal which  is listed as architectural monument of local importance by the Almaty City Council; risk of legacy contamination with hazardous materials (jet fuel, PCBs, etc.); and potential retrenchment due to optimization. 

With no expansion of the footprint and no land acquisition impacts identified, no planned retrenchment of AIA current workforce, identified measures reflective of good international industry practice for airport operations to mitigate noise impacts and community safety risks, and agreed practical solution to minimize the project’s impact on cultural heritage  – the project is categorized as B according to IFC’s Policy on Environmental and Social Sustainability. Construction impacts will be addressed through the implementation of good international industry practices.