The Asian Infrastructure Investment Bank (AIIB) announced Monday that it is extending a 140 million euro ($153.66 million) loan to Türkiye’s Antalya Airport operator to improve its runway capacity and terminal infrastructure.
This capex bridge loan will facilitate excellent cross-border connectivity between Europe, Asia and other destinations and marks AIIB’s first non-sovereign backed financing transaction in the airport industry, the bank said in a statement.
"Once completed, the extension of the Antalya Airport will improve utilization of existing runway capacity and high-quality terminal infrastructure while easing transportation constraints," the statement said.
"The Antalya Airport is a gateway to tourism in Türkiye," said Konstantin Limitovskiy, AIIB’s Vice President for Investment Operations.
"This project is aligned with AIIB’s Transport Sector Strategy and thematic priorities of Green Infrastructure, Connectivity and Regional Cooperation and Private Capital Mobilization. This is AIIB’s first solid entry into the sustainable aviation market and will boost the tourism-dependent economic health of the Antalya region locally. It will also contribute to Türkiye’s economic recovery from recent financial shocks and local natural disasters while enhancing global cross-border connectivity," Limitovskiy noted.
The financing package is provided in partnership with the International Finance Corporation (IFC), a part of the World Bank Group and the European Bank for Reconstruction and Development (EBRD).
Besides improving Antalya Airport’s operational efficiencies, this collaboration will support adopting international environmental, social and governance (ESG) standards and climate change mitigation and adaptation efforts.
FTA, a joint venture between global airport operators Fraport AG Frankfurt Airport Services Worldwide and TAV Airports Holding, will meet the MDBs’ ESG standards by committing to develop a capacity for inclusive and gender-responsive procurement to increase women’s participation at the contractor level, the statement said.
The project will reduce greenhouse gas emissions by introducing low-carbon measures in compliance with LEED green building standards, which AIIB will also monitor as part of the project’s intermediate indicators. These measures will also include the construction of an on-site solar farm and other various energy efficiency initiatives, which will rank the Antalya Airport among the top best carbon management airports in the world, as it aims to achieve carbon neutrality by 2050.
AIIB has been active in Türkiye since 2018 and has committed over $3.9 billion through 19 projects covering the Turkish market’s water, energy, urban, transport and healthcare sectors.