Istanbul, Türkiye, March 27, 2024—A new investment to upgrade and expand Türkiye's Antalya Airport will help boost the country's competitiveness as a global tourism destination and avoid greenhouse gas emissions while providing vital funding amid a challenging economic environment.
IFC is providing an additional €62.5 million loan to Fraport TAV Antalya Yatırım Yapım ve İşletme A.Ş. (Fraport TAV), which manages and operates the airport terminals, as part of an additional €430 million financing package for the project, alongside the Asian Infrastructure Investment Bank (AIIB), Deutsche Investitions und Entwicklungsgesellschaft (DEG), European Bank for Reconstruction and Development (EBRD), and 13 commercial banks. The financing follows IFC's €150 million loan to the company last year as part of a €1.9 billion financing package.
The infusion of additional funds will bolster the ongoing capital expenditure program for the airport, aiding its expansion and enhancing its capacity. This financial support is pivotal for completing the expansion project, thereby facilitating the recovery and development of the sector by increasing its capacity to accommodate growth.
"Antalya Airport served more than 35 million passengers in 2023 and fully recovered from the impact of the pandemic. The ongoing investment program will provide an essential support to the long-term sustainable growth of the tourism industry in Antalya region," said Burcu Geriş, Fraport TAV Antalya Board Member representing TAV Airports. "This additional loan contributes to Antalya Airport's development as a leading example in environmental protection while creating value for all stakeholders involved."
Michael Reusch, Fraport TAV Antalya Board Member representing Fraport AG, added: "Since the start of the construction program at the beginning of 2022 we have achieved considerable progress with the support of our financing and project partners. Antalya Airport is the primary touristic gateway in the Mediterranean Sea and our passengers will be able to experience first class airport amenities when the project is completed. This successful Turkish-German cooperation is a landmark project for sustainable tourism."
IFC is also supporting Fraport TAV in reducing the expansion's carbon footprint by utilizing renewable energy generated on-site and constructing energy-efficient terminals. The new expanded terminals are expected to achieve energy savings of at least 24 percent, qualifying them for a Leadership in Energy and Environmental Design (LEED) Gold certification.
"IFC remains committed to strengthening Türkiye's air transport infrastructure, given its multiplier effects across the economy and links with key sectors like tourism and trade," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. "Our financing will enable completion of this vital airport upgrade, while also supporting a well-established player in the sector."
Travel and tourism represent approximately 5 percent of Türkiye's GDP and are significant contributors to foreign exchange inflows into the country. Türkiye was Europe's fourth most popular destination during the summer 2023. Antalya Airport is the country's main international tourist airport, handling more than 35.5 million passengers in 2023.
IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $20 billion in the last decade alone. Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $5.2 billion as of January 2024. IFC supports transportation infrastructure projects in emerging markets with the aim to reduce costs, optimize times, relieve bottlenecks, facilitate international trade, and create jobs. IFC also provides financing to support climate-friendly transport systems. Over the past decade, IFC has committed and mobilized over $10.1 billion for transport projects in emerging markets.
About Antalya Airport
Antalya Airport, operated by a joint venture between TAV Airports and Fraport, served 35.5 million passengers in 2023. With the second busiest airport in Türkiye in terms of international passenger traffic, Antalya is the largest tourism hub in the Mediterranean. In December 2021, TAV Airports-Fraport JV extended its concession to operate Antalya Airport until December 2051. The first phase of development works, which includes the comprehensive expansion of Terminal 2, the addition of new apron and carpark areas, and the construction of new general aviation and cargo terminals, is expected to be completed in 2025.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org, www.ifc.org/transport
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