| Project Detail |
A senior unsecured loan of up to EUR 15 million to the City to finance the procurement of 100 CNG buses including (i) 30 accordion-type and (ii) 70 solo-type buses for the purpose of renewing the Citys aging public transport fleet and to expand urban transport services in the City. The EBRD loan will be co-financed by a Shareholder Special Fund ("SSF") grant for a total amount of EUR 7.0 million, which will be utilised from the Community Resilience Window ("CRW") of the SSF.
Project Objectives
The proceeds of the loan and the capex grants will be utilised to finance the procurement of 100 new CNG powered buses (Euro 6 standard). The fleet involves 70 solo and 30 articulated-style buses. The proposed Project will expand the urban transport capacity in this refugee host community and relieve pressure on existing municipal services by providing extra capacity and better quality services. The existing transport infrastructure is providing inferior services given an aging bus fleet (average life is 9.9 years, and economic useful life of a bus is 10 years). By virtue of this investment, the average vehicle age of the bus fleet of the City will drop to 5.5 years and the total public transportation capacity will be increased, by: (i) replacing 44 old diesel buses (Euro 1 standard, 1990-99 model) experiencing frequent breakdowns; and (ii) adding 56 new CNG buses to the fleet to relieve the burden on Mersin public transportation networks and improve service quality. |
