Euro 212.9 million (US$ 275 million)

PROJECT BRIEF

BACKGROUND: Currently, 70% of the population in Turkey lives in urban areas. This high urbanization leads to demand for core municipal services that include water, sanitation and solid waste management. Turkey intends to provide good quality municipal services in line with international standards. To achieve this end, high levels of investments at the local level are required to ensure the delivery of quality services.   

PROJECT OBJECTIVE: The objective of the Project is to support sustainable environmental services in selected municipalities. To meet this objective, the Project  supports: (i) development of municipal infrastructure to improve the environment and quality of water, wastewater and solid waste management services; (ii) utilities to strengthen their financial position, improve operational efficiency and prepare and implement projects; and (iii) the institutional strengthening of Iller Bank (IB), which will implement the Project.

PROJECT DESCRIPTION: The Project has three components:
Component 1 - Municipal Development: This includes water, wastewater and solid waste sectors in the selected municipalities.
Component 2 - Municipal Technical Assistance: This supports feasibility studies, urban planning, preparation of design and bidding documents, operational improvements at the utility level and construction supervision.
Component 3 - Iller Bank Strengthening: This provides include technical assistance to Iller Bank to implement the Project.

IMPLEMENTING and MONITORING: IB, the Borrower of the World Bank loan, will implement the Project through a Project Management Unit. Municipalities will sign Sub-Loan Agreements with IB to receive funds necessary for investments and institutional improvements. IB will monitor Project progress at the municipal level and report progress to the Bank on a regular basis. IB will use its specialized water and wastewater department and regional offices, as needed.

BENEFITS: The benefits of the Project are: (i) to improve the environment in measurable ways through increased wastewater treated, reduced water losses, increased sewerage connection and environmentally safe waste disposal (ii) to improve the financial position and operational efficiency of the utilities; and (iii) to strengthen IB, which will enable it to support municipal development.

PROJECT STATUS: The Project was made effective on May 18, 206.  Euro 157.5 million has been allocated, with Euro 55.4 million unallocated. Procurement is underway.

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