European bank allocates $152M for investment in Antalya’s airport

Monitoring Desk

ISTANBUL: The European Bank for Reconstruction and Development (EBRD) said Thursday it is providing a 140 million euros ($152 million) capex bridge loan to Fraport TAV Antalya Yatırım, Yapım ve İşletme (FTA) in Türkiye for the new infrastructure of the airport in the Mediterranean city to be completed.

The loan is part of a financing package that includes funds from the International Finance Corporation (IFC) and the Asian Infrastructure Investment Bank (AIIB).

Besides enabling the airport’s new infrastructure to be completed, the EBRD’s investment is set to ensure improvements in energy efficiency.

The project will include green investments such as Leadership in Energy and Environmental Design (LEED) certified terminals and a solar power plant. As part of the transaction, the airport has committed to getting the Level 4 “Transformation” accreditation under the Airport Carbon Accreditation scheme.

Achieving this level of accreditation will put Antalya Airport in the top tier of airports globally in terms of carbon management and stakeholder engagement, the bank said.

The FTA has also committed to inclusive procurement to increase the share of women within its contractor workforce.

The FTA is a joint venture between global airport operators Fraport AG Frankfurt Airport Services Worldwide (Fraport) and Istanbul-based TAV Airports Holding (TAV Airports) that has been awarded a 25-year concession to operate Antalya Airport starting in 2027.

The airport is currently operated by the same sponsors of an existing concession that expires at the end of 2026.

Nandita Parshad, managing director of the EBRD’s Sustainable Infrastructure Group, welcoming the deal, said: “Antalya Airport is a key part of the infrastructure needed to grow the tourism sector and the economy in Türkiye.”

“As the EBRD, we welcome the FTA’s efforts to make their operations greener and more diverse as they strive toward a more sustainable future. We are confident that this loan and the planned improvements will allow Antalya Airport to become a standard-bearer and leading light in the aviation sector,” Parshad added.

TAV Airports Deputy CEO and CFO Burcu Geriş also commented that: “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,” Geriş said.

Fraport’s Vice President of International Activities and Services Michael Reusch also noted that, “Fraport strategically focuses on developing airports over the long term.”

Saying that they have been active for over two decades at Antalya Airport, Reusch emphasized: “When we entered the project the airport handled fewer than 5 million passengers a year. In 2022, over 30 million passengers were using Antalya Airport from all over the world, which underpins the attractiveness of the Antalya region as a tourist hot spot: Antalya Airport is today the No. 1 gateway to the picturesque south coast of Türkiye.”

“To accommodate future demand, it is necessary to develop the airport sustainably in line with international standards. We are proud to continue contributing to such a success story with know-how and resources gathered from Germany,” he added.

Courtesy: (Dailysabah)