DESCRIPTION
A sovereign-backed multi-sector facility (the Phase 2 Facility) in favor of the Borrower to support Türkiye’s climate mitigation and adaptation commitments under the recently ratified Paris Climate Agreement (Oct. 2021). Proceeds from the Phase 2 Facility will be on-lent in the form of Sub-loans to eligible private sector entities (the Sub-borrowers) to finance eligible climate mitigation (CM), climate adaptation (CA) and climate industry (CI) projects in Türkiye’s energy, infrastructure, and other productive sectors (the Sub-projects).
The proposed Phase 2 Facility is a follow-up to the project P000132 TSKB Sustainable Energy and Infrastructure On-lending Facility (the Phase 1 Facility), which reached loan closing on April 1, 2022. The Project Closing Note was submitted to the Board on Sep. 26, 2022.
The Bank may co-finance alongside TSKB selected non-sovereign-backed Sub-projects under the Phase 2 Facility on a case-by-case basis.
ENVIRONMENTAL AND SOCIAL INFORMATION
AIIB’s Environmental and Social Policy (ESP) including the Environmental and Social Exclusion List (ESEL) and Environmental and Social Standards (ESSs) apply to this Project. The Project is placed in Category FI. TSKB’s Environmental and Social Management System (ESMS), together with the Project Operations Manual (POM), is materially aligned with AIIB’s ESP and will be used as the project’s E&S instrument.
The preliminary pipeline comprises subprojects across the renewables, energy efficiency, climate adaptation and climate industries. Impacts on communities’ health and safety, involuntary resettlement and land acquisition, sensitive habitats, ecosystems and its services, and employment working conditions are potential ES risks associated with such sub-projects. Every subproject will be screened to identify the risks and following the assessment, appropriate mitigation measures will be adopted.
AIIB will conduct prior review and approval for all Category A subprojects which will be capped at three by TSKB. Regarding renewable subprojects, TSKB will review potential supply chain related labor and working conditions, require appropriate mitigating measures, and seek AIIB's advice if required. Activities in AIIB’s ESEL will not be eligible for financing. Coal mining, coal transportation or coal-fired power plants, as well as infrastructure exclusively dedicated to support any of these activities will also be excluded.
TSKB maintains and publishes its ESMS in both Turkish and English. At the facility level, TSKB will continue to disclose the E&S documentation for all higher risk subprojects (category A and selected category B subprojects).
TSKB has established an external communications mechanism (ECM), including contacts and processes to receive and handle complaints related E&S matters, and its information including PPM of AIIB will be disclosed in both Turkish and English, in an appropriate manner. The ECM will be made available to project-affected people (PAPs) and project contracted workers. Under the POM, TSKB will require its Sub-borrowers to establish a suitable subproject-level GRM or equivalent and inform people in the subproject’s footprint about its availability in an appropriate manner. The GRM will receive and facilitate resolution of the concerns and complaints of people who believe they have been adversely affected by the project’s E&S impacts.
