World Bank grants $1 bln for Türkiye's post-quake recovery

ANKARA

The World Bank has allocated a substantial sum of $1 billion to aid the recovery efforts in earthquake-affected provinces in Türkiye's south, Environment, Urbanization and Climate Change Minister Mehmet Özhaseki has announced.

Özhaseki noted that this loan would play a pivotal role in advancing reconstruction initiatives in the earthquake-stricken region.

A substantial portion of the loan package amounting to $684.8 million has been allocated to the ministry. Özhaseki outlined the distribution of these funds, stating that "$296.5 million [of this] will be directed towards the ministry's housing projects in rural areas within the earthquake zone, while $388.3 million will be channeled into [ministry-owned] İlbank's infrastructure projects in the earthquake-affected area."

Furthermore, the minister detailed how the loan earmarked for rural areas will be utilized to restore essential infrastructure and social facilities in the villages. This includes the renewal of water and rainwater networks, solid waste management facilities, municipal fire stations, as well as damaged emergency response and municipal equipment.

Additionally, fire and rescue vehicles and solid waste collection vehicles in the earthquake region will also be upgraded and renewed.

The announcement followed a prior World Bank project aimed at preventing the closure of viable micro, small and medium enterprises (MSMEs) impacted by the economic shocks resulting from the earthquakes.

This project, with a budget of $450 million, seeks to ensure the continuity and sustainable growth of these enterprises in the 11 provinces affected by the quakes.

Under the guarantee of the Treasury and Finance Ministry, the Small and Medium Enterprises Development Organization of Türkiye (KOSGEB) implements this project to alleviate liquidity pressures on MSMEs, enabling them to resume their operations and gradually restore employment levels to those seen before the earthquakes.

The project offers reimbursable financing to eligible MSMEs to cover their operating expenses, with 10 percent of the total funds earmarked to support women-owned or led MSMEs, emphasizing inclusivity in the recovery process.