IZSU was established in 1987 as the water utility of the Izmir Metropolitan Municipality (IMM), Turkey’s third largest metropolitan area. IZSU serves the nearly 4 million there by providing drinking water, major wastewater and sludge treatment, and water and sewerage network infrastructure projects. The utility is 100% owned by the public municipality.
Among its operations is the Cigli Wastewater Treatment Plant which was built in 2000-2001 to treat wastewater from some of IMM’s most densely populated districts, accounting for 82 percent of the total population in Izmir. Rapid population growth and the possible infiltration of ground and sea water have resulted in Cigli operating at near maximum capacity (584,000 of a possible 605,000 cubic meters per day), with overflows occurring during particularly rainy periods. Furthermore, maintenance at the facility was needed to replace certain equipment that has exceeded its useful life.
IFC & IZSU Wastewater
Given the vast coverage of the Cigli plant, and taking into account its potential to overflow and its dated equipment, IFC's subnational finance team provided a loan of approximately $40 million to finance the expansion of the plant. This investment is expected to increase the treatment facility’s maximum capacity to 821,000 cubic meters per day and is expected to help the facility avoid overflows and allow Cigli to shut down dated equipment for maintenance or replacement.
Access IFC’s investment is expected to help IZSU maintain its water treatment services for nearly four million people during a time when the area is experiencing strong urban growth.
Environment Avoided overflows at the Cigli plant are expected to reduce the risks associated with the discharge of untreated effluents. In addition, it is expected that facility updates will help Turkey progress towards compliance with European Union environmental standards for wastewater treatment.
Financial Security IZSU was able to leverage its solid financial condition and transition to market-based financing after secure long-term financing from IFC during a period of curtailed lending in Europe.
By the Numbers
$40 million loan
Nearly 4 million people served
Maximum capacity increase from 605,000 cubic meters squared to 821,000 cubic meters squared