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Project Brief

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
Bandirma Port
Project ID
Fiscal year
Not Active
Guarantee holder
Unicredit AG
Investor country
Host country
Environmental category
Date SPG disclosed
April 16, 2010
Project Board date
May 18, 2010
Gross exposure
 $55.0 million
Project type
Environmental and Social Review Summary

View Summary of Proposed Guarantee

Project Description

MIGA has issued a guarantee of $55 million to cover UniCredit AG’s loan financing the privatization of Bandirma Port in Turkey under a transfer-of-operating-rights scheme for a period of 36 years.  MIGA’s guarantee covers against the risks of currency inconvertibility and transfer restriction as well as expropriation of funds for a period of 14 years.

Following a competitive tender, Celebi Joint Venture Group was named preferred bidder in May 2008, offering an upfront operating rights fee of $175.5 million. 

The project represents an ongoing process of privatization started by the government of Turkey in the early 1980s.  It aims to introduce openness and competitiveness into the country, increase efficiency in former state-owned enterprises and promote economic growth.

The privatization of Bandirma Port will introduce a new and experienced management team and best market practices that will improve productivity and efficiency of the port.  In turn, this will strengthen the competitiveness of local exporters in the hinterland by decreasing transportation costs.  In particular, better port operations will further stimulate the growth of the region’s automotive manufacturing industry as a hub for Central and Eastern Europe.  The local economy will also benefit from improved connectivity to international markets, a key infrastructure requirement to attract foreign direct investment.  Finally, the new operators of the port will introduce higher standards of operation, including environmental and safety rules in line with national and European Union guidelines.

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