Istanbul, Türkiye, April 17, 2023—IFC is supporting an upgrade of Antalya Airport to enhance Türkiye's competitiveness as a global tourism destination while helping to manage the project's carbon footprint in line with the Paris Agreement. IFC's first airport financing in the country will help improve transport connectivity and provide a crucial source of funding at a time of increased economic uncertainty.
IFC is providing a €150 million loan to Fraport TAV, which manages and operates the airport terminals, as part of a €1.9 billion financing package, alongside the European Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank, and 13 commercial banks. This will help fund the upfront lease payment and capital expenditure program for the airport and support the sector's development. Improving connectivity and further integrating Türkiye into the global tourism market is critical as the country recovers from the COVID-19 crisis.
"Antalya has time and again shown that it is a very high-demand and resilient tourist destination in the Mediterranean basin owing to a long tourism season, excellent quality of service, and attractive pricing. As such, we feel very privileged to be in a position where we can help the city's tourism sector continue to grow until 2052. This loan will contribute to the capacity investments in the airport, which have been planned to serve Antalya for another 25 years of growth. Ongoing investments will strengthen Antalya's position as a leading airport in the region in terms of environmental protection and create increased value for stakeholders and local communities for years to come." said Burcu Geriş, TAV Airports' Deputy Chief Executive Officer and Chief Financial Officer.
Fraport's Vice President of International Activities and Services, Michael Reusch, explained "Fraport strategically focuses on developing airports over the long term. At Antalya Airport, we have been active for over two decades now. When we entered the project, the airport handled fewer than 5 million passengers a year. In 2022 more than 30 million passengers were using Antalya Airport from all over the world, which underpins the attractiveness of the Antalya region as a tourist hotspot: Antalya Airport is today the number one gateway to the picturesque south coast of Türkiye. To accommodate future demand, it is necessary to develop the airport sustainably in accordance with international standards. We are proud to continue contributing to such a success story with know-how and resources gathered from Germany."
IFC will also be 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 terminal buildings are expected to achieve energy savings of at least 24 percent, qualifying them for a Leadership in Energy and Environmental Design Gold certification.
"Supporting the development of the country's air transport infrastructure is critical, given its important role in connectivity as well as multiplier effects across the economy through linkage with other sectors like tourism and trade," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. "Our financing will facilitate a successful transition between the lease periods and support the continuity of a well-established player in the aviation sector as the operator of Antalya Airport."
Located on Türkiye's Mediterranean coast, the Antalya region is the country's most popular tourism destination. Antalya Airport is the country's main international tourist airport, handling more than 32 million passengers in 2022. Travel and tourism represent approximately 5 percent of the country's GDP and are significant contributors to foreign exchange inflows into the country.
IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $10 billion in the last decade alone. Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4.6 billion as of March 2023.
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 2022, IFC committed a record $32.8 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.
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About Antalya Airport
Antalya Airport, operated by a joint venture between TAV Airports and Fraport, served 32.2 million passengers in 2022. 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 will increase the capacity of the airport to 65 million passengers annually, is expected to be completed in 2025.
