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| Summary of Project Information (SPI) |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
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| Project number | 24122 |
| Project name | YUCE OZEL EGITIM VE KULTUREL HIZMETLER A.S. |
| Country | Turkey |
| Sector | Education Services |
| Department | Health and Education |
| Company name | Yuce Ozel Egitim VE Kulturel Hizmetler A.S. |
| Environmental category | B |
| Date SPI disclosed | February 23, 2005 |
| Projected board date | April 29, 2005 |
| Status | Active |
| Previous Events | Invested: October 11, 2005
Signed: May 16, 2005
Approved: April 19, 2005 |
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| Description of company and purpose of project |
Yuce Private Education and Cultural Services Inc. (‘Yuce’ or the company) is a leading provider of high school education and vocational services located in Ankara, Turkey. Yuce is currently undertaking an $8.6 million investment program which will enable Yuce to achieve the following components:
- expand its present enrollment capacity by 40% to 2,100 students through the ownership of the land and the building of 20 additional classrooms;
- build a library, a professional development center for teachers’ training and implement an alumni club;
- modernize existing classes through technological improvements;
- consolidate its quality curriculum through the completion of its accreditation process with International Education Authorities;
- upgrade its services in the area of educational software and systems development; and
- refinance a small portion of YUCE’s short-term debt contracted from the construction of the new campus.
Project rationale: The project would allow YUCE to build on its continuous growth in private education and equip a leading Turkish school with modern facilities and improve the quality of its curriculum. Improving school development, the quality of teaching and introducing education technologies into schools are key components of the system of education reforms allowing Turkey’s accession to the EU. The project will also allow a leader in educational software development to further increase its business volume as a provider of education management systems in a growing market. Finally, the project would assist the sponsor in reducing expensive short-term debt and hence high financial charges, with long-term funding that is more adequate for capital investments.
YUCE was established in 1983 in the Kizilay district, downtown Ankara, initially as a private preparatory school, providing students enhanced skills to allow them to pass the national university entrance exam. The passing results of its students was so exceptional that YUCE soon acquired a very good reputation and established in 1988 the first private Scientific High School in Turkey, with a major focus on basic sciences such as mathematics, physics, chemistry and biology. Today, YUCE has a K-12 operation with over 1,500 students, the YUCE IT Academy which opened in November 2000 and offers long-term IT career courses and YUCE Information Systems for software development and certified professional computer programs. |
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| Project sponsor and major shareholders of project company |
| The project sponsors are Yuce’s shareholders. Yuce is a family owned business belonging to the Kalinyazgan family. The founding member is Yucel Kalinyazgan (64), the current president of the Association of Ankara Private Schools. Mr. Yucel Kalinyazgan is the chairman of YUCE’s Board and the General Manager of YUCE. He owns 82% of YUCE while another 10% are owned by his four siblings and the remaining 8% by members of the Science Board. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $8.6 million. The proposed IFC investment is $4 million equivalent senior debt financing for IFC’s own account. |
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| Location of project and description of site |
| The project’s location will be Yuce’s campus for the k-12 and two adjacent properties for the YUCE IT Academy and YUCE Information Systems. The campus was constructed in the Oran district, on the outskirts of Ankara, on 7 acres of land leased for 49 years from the state. Total closed space is 15,000 m2. The fixed asset investments will be made on the existing campus. |
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| Project Development Impact and IFC's Role |
The project will have a strong development impact in expanding access to high quality basic and secondary education in Turkey. Turkey still lags behind other countries in many educational measures: gross enrollment in secondary education is 76% in Turkey, relative to 89% in other ECA countries and 106% in high-income countries. Moreover, the increase in enrollment in basic education following the passage of the 1997 law has resulted in enormous demand for secondary education—for which major physical and quality investments are needed.
IFC’s role in the education sector in Turkey is to focus on specialized/vocational training following its investments in two universities and a potential investment in a k-12 school in Ankara, offering the general curriculum. Through Yuce, IFC will assist a pioneer in the area of IT training and software systems and programs assisting other educational institutions across the country. Through the refinancing component of the project, IFC will allow the school to substitute expensive short-term debt with cheaper long-term financing. |
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| Environmental and social issues - Category B |
This a category B project according to IFC’s environmental and social review because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical, environmental, health and safety , as well as social/community information submitted by the project sponsor as well as site visits to existing Yuce facilities in Ankara. Based on this information, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the specific agreed mitigation measures.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
| The translated ERS will be available upon request at Yuce’s headquarters in Ankara (Ismet Eker Sok. No:5 06450 Oran, Ankara, Turkey). It will also be published in the company’s website (http://www.yuce.k12.tr/). An advertisement in a local newspaper will inform the local community of the availability of the ERS. |
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| To contact the project company, please write to: |
Mr. Kagan Kalinyazgan – Assistant General Manager
Yuce Private Education and Cultural Services, Inc.
Ismet Eker Sok. No:5 06450 Oran
Ankara - Turkey
Tel. 905322418294 / 90 312 4900202 ( Ext.:125 )
E-mail: kagank@yuce.com.tr |
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