The Asian Infrastructure Investment Bank (AIIB) has recently announced an extension of $154 million to support the expansion of Antalya Airport in Türkiye. The investment aims to enhance the capacity and service quality of the airport, a crucial hub for the country’s tourism industry, and boost its potential to become a regional aviation hub. This move is part of AIIB’s commitment to support sustainable infrastructure development across Asia and beyond, promoting economic growth and connectivity on the continent. This article delves deeper into the details of AIIB’s investment in Antalya Airport and its potential impacts on the Turkish aviation and tourism sectors.
The Asian Infrastructure Investment Bank (AIIB) has granted a €140 million ($153.66 million) loan to the operator of Turkey’s Antalya Airport, to upgrade its runway capacity and terminal infrastructure. This capex bridge loan, which is AIIB’s first non-sovereign backed financing transaction in the airport industry, will enable excellent cross-border connectivity between Europe, Asia and other destinations. Once completed, the project will improve the utilization of the airport’s existing runway capacity and high-quality terminal infrastructure, as well as ease transportation constraints.
According to Konstantin Limitovskiy, AIIB’s Vice President for Investment Operations, the Antalya Airport is a gateway to tourism in Turkey. The project aligns with AIIB’s Transport Sector Strategy and thematic priorities of Green Infrastructure, Connectivity and Regional Cooperation and Private Capital Mobilization. It marks AIIB’s first solid entry into the sustainable aviation market and aims to boost the tourism-dependent economic health of the Antalya region while enhancing global cross-border connectivity. It will also contribute to Turkey’s economic recovery from recent financial shocks and local natural disasters.
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). In addition to improving the airport’s operational efficiencies, this collaboration supports adopting international environmental, social and governance (ESG) standards and climate change mitigation and adaptation efforts.
The project will reduce greenhouse gas emissions by introducing low-carbon measures in compliance with LEED green building standards, which AIIB will monitor as part of the project’s intermediate indicators. These measures will include the construction of an onsite solar farm and other energy efficiency initiatives, aiming to rank the Antalya Airport among the top best carbon management airports in the world, with the goal of achieving carbon neutrality by 2050.
The project aims to 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. FTA, a joint venture between global airport operators Fraport AG Frankfurt Airport Services Worldwide and TAV Airports Holding, will take care of this aspect.
AIIB has been active in Turkey since 2018 and has committed over $3.9 billion through 19 projects covering the Turkish market’s water, energy, urban, transport and healthcare sectors.
