Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Izmir Marine Transportation Project
- Project ID
- Fiscal year
- Guarantee holder
ING Bank, a Branch of ING-DiBa AG
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- May 23, 2013
- Project Board date
- June 25, 2013
- Gross exposure
- $65.5 million
- Project type
- Strategic priority area
- ESRS for Izmir Marine Transportation Project
On June 27, 2013, MIGA issued guarantees of $65.5 million covering non-shareholder loans by ING Bank, a branch of ING-DiBa AG (ING) of Germany, to the Metropolitan Municipality of Izmir (MMI) for the Izmir Marine Transportation Project in Turkey. The coverage is for a period of up to 10 years against the risk of non-honoring of sovereign financial obligations. The ING loan will finance up to six ferries in support of the project.
This project is part of a larger effort to acquire ferries and renovate wharves in the Metropolitan Municipality of Izmir (MMI). The World Bank’s International Finance Corporation (IFC) acted as the loan arranger for this project. Other lenders include the European Bank of Reconstruction and Development (EBRD) and Agence Française de Développement (AFD).
The current ferries in service in Izmir have reached the end of their operating lives and therefore have high maintenance costs and outdated technology. The new ferries will be significantly faster, more fuel efficient, environmentally friendlier, and safer. As a result, ferry boat service will increase the share of sea transportation in Izmir’s integrated public transportation system, easing road traffic congestion and pollution, as well as enhancing public safety and security.
The project is aligned with the World Bank Group’s Country Partnership Strategy for Turkey. Improving transportation infrastructure is a key component of the Bank Group’s focus on helping Turkey improve its competitiveness and employment opportunities.
MIGA’s support for this investment is also aligned with the Agency’s strategy of supporting complex projects.