The project will be implemented by TDD.
Koc Group companies own 73.9% of TDD’s shares, Taylan Holding owns 5.7%, and the remaining 20.4% is publicly owned. Founded in 1926, the Koc Group is one of Turkey''s leading diversified conglomerates with activities in the automotive, household appliances and electronics, financial services, food, retailing, energy, hospitality and information technology sectors. The Group has a long history of cooperating with international firms as evidenced through joint ventures, as well as production and licensing agreements with companies like GE, Siemens, Whirlpool, LG Electronics, Fiat, and Ford. At end-2004, the Koç Group comprised of 106 companies employing about 60,000 staff. Koç Holding and 14 Koç Group company shares are traded on the Istanbul Stock Exchange.

The project cost is estimated at approximately EUR55 million (US$66 million). The IFC financing is an A loan of EUR25 million for its own account.

66.12 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	60.07
Equity	6.05

* These investment figures are indicative

The company is headquartered in Inegol. Its main manufacturing facilities are located in both Inegol and Bozuyuk in central Anatolia, Turkey. This project will be implemented mainly at the Bozuyuk plant.

The proposed IFC investment will improve TDD’s competitiveness and enable it to

- provide better value to the growing domestic market; and
- earn valuable foreign exchange through increased exports.

As important, the project will support Turkeys’ ability to replace part of its fossil fuel consumption with more environmentally friendly natural gas. It will further support direct and indirect employment creation through expansion of capacity, and forward and backward linkages related to outsourced components, transport, installation and after-sales services in Turkey. While directly employing about 1,500 people, TDD’s sales and distribution network in Turkey includes 2,000 sales points and 300 authorized service stations.

The IFC role in the project involves provision of long-term financing, which was difficult to obtain for maturities longer than 5 years. In addition, TDD would like to benefit from IFC’s global experience in a variety of emerging markets, including China, where TDD has a small subsidiary. By offering access to a variety of products, expertise and funding sources, IFC can play a role in helping TDD maintain high environmental and corporate governance standards.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental, worker health and safety (EHS), and social/community impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical, environmental, health and safety, social and community information submitted by the project sponsor as well as site visits to the Inegol and Bozuyuk plants The following potential environment, health and safety (EHS) and social/community impacts of the projects were analyzed.

- The compliance of TDD’s Bozuyuk plant with Turkish and IFC EHS requirements;
- The commitment of TDD to quality and efficiency and to EHS performance including international certifications;
- Labor, community and social issues.
Location of environmental documents In locally affected community
The company’s website, the gates of the Bozuyuk and Inegol plants, Bozuyuk municipality house, local news papers.