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IFC’s Support to TAV Airports Holding Promotes Business and Tourism in Tunisia


In Washington, D.C.:
Zibu Sibanda
Phone: 202-473-0605

E-mail:
zsibanda@ifc.org


Washington, D.C., May 2, 2008—IFC, a member of the World Bank Group, has signed an agreement with TAV Airports Holding, Turkey’s leading airport operator, to finance a concession for two airports in Tunisia. This will promote South-South investment flows and support the sustainable development of tourism, a key sector that employs 15 percent of Tunisia’s workforce.

The project will build a new airport in Enfidha, with an initial capacity of 7 million passengers a year, and rehabilitate the airport in Monastir. Both airports will operate under a 40-year concession. The project is expected to generate about 2,000 new jobs during construction and more than 20,000 direct and indirect jobs once the airports are operational. It is North Africa’s first public-private partnership for airports, and it is expected to provide a model for other public-private partnerships in Tunisia and the broader region.


“IFC is supporting Tunisia’s efforts to develop airport infrastructure by opening new gateways to the country. We hope our involvement will attract greater participation from commercial banks to help finance this important project,” said Rashad Kaldany, IFC Director for Infrastructure.


IFC arranged a full financing package of €398 million, including direct long-term senior and subordinated loans of €135 million and a €263 million syndicated loan, underwritten by ABN, Société Générale, and Standard Bank. The project’s concessionaire, TAV Airports Holding, is a leading integrated provider that operates airports in Georgia and Turkey. TAV Group has extensive experience in airport construction in Egypt, Georgia, Libya, Qatar, Turkey, and the United Arab Emirates.

To further boost tourism, Tunisia is planning to increase and upgrade its accommodation capacity. The Monastir Airport, the main entry point for tourists going to major tourism centers, is no longer sufficient to meet demand. Improving the airport’s infrastructure will help the country further develop and sustain its competitive position in the Mediterranean tourism market.

About IFC

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org.