7 May 2010 – The World Bank Board of Executive Directors today approved additional financing to Iller Bankasi in the amount of €178.2 million (US$240 million equivalent) for the ongoing Municipal Services Project. The Municipal Services Project, in an amount of €212.9 million (US$275 million equivalent), was approved on 23 June 2005 and became effective on 18 May 2006. The project supports sustainable environmental services in selected municipalities.
The additional financing provides resources for expanding the scope of the project from the original eleven municipalities and utilities to fifteen with new investments in Beypazarı, Istanbul, Kayseri, and Kirşehir. In addition, three of the original eleven municipalities, Antalya, Denizli, and Mersin, will scale up already ongoing activities.
The additional resources will help finance the development of municipal infrastructure to expand and improve the water, wastewater, and solid waste management services in the participating municipalities. They will also provide support to municipalities and to Iller Bank in the management of municipal investments.
“Almost two thirds of all Turkish people live in urban areas and we see continuing rapid migration from rural areas into cities. The Municipal Services Project helps finance critical water, wastewater, and solid waste investments that will help bring safer water, more sanitary landfills and a clean environment to people living in cities across Turkey,” said Ulrich Zachau, Country Director for Turkey. “The World Bank is pleased to provide additional resources for these essential investments that make a difference in the daily lives of Turkish families.”
The lending instrument for the additional financing for the Municipal Services Project is a Flexible Loan in Euro with an interest rate equal to 6 months Libor, plus fixed spread with final maturity of 30 years including a grace period of 5 years. The Loan is guaranteed by the Turkish Treasury.
For more information about the World Bank’s work in Turkey, visit: http://www.worldbank.org.tr. For more information about this project, visit: http://www.worldbank.org/projects
CONTACT
In Ankara: Tunya Celasin
(90-312) 459 83 43
Tcelasin@worldbank.org
In Washington: Michael Jones
+1 202 473 2588
Mjones2@worldbank.org
