The European Investment Bank (EIB), the European Union's long-term
lending institution, is providing EUR 40 million (1)
for water sector works in medium-sized Turkish municipalities, located
primarily in the eastern part of Turkey (Central or Eastern Anatolia).
The EIB loan is signed under the Special Action Program (SAP) Mandate
for Turkey (2001-2004), which is intended to assist Turkey to upgrade its
infrastructure in preparation for the Customs Union with the EU.
Considering Turkey's status as an accession country, the EIB loan will as
well contribute to meeting the "environmental acquis", in
particular the Urban Wastewater Directive (UWWD).
The EIB loan is made available for 25 years to the Republic of Turkey
for onlending to selected mid-sized Turkish municipalities. Eligible
project components have been already identified in the cities of Sivas,
Siirt and Batman. Other cities are currently being appraised and will soon
be included under the EIB loan. The EIB loan will be allocated following a
Framework approach, designed in close collaboration with the German
Kreditanstalt für Wiederaufbau (KfW) to meet the specific water sector
needs of medium-sized municipalities in Turkey (having between 100,000 and
500,000 inhabitants).
The EIB loan covers investments in water supply (mainly leak detection
programmes), wastewater collection and treatment (mainly rehabilitation
and extension of collection networks and the construction of sewerage
treatment plants) and stormwater drainage (construction of stormwater
channels). The selected municipalities will be supported throughout the
project preparation and implementation by external assistance, foreseen
under the Framework approach defined by KfW and EIB. This assistance will
also include institutional support, designed to strengthen the operations
of public water services in the selected municipalities.
Note to Editors :
- The EIB is a lead player in implementing the European Union's
priority objectives. In 2001, EIB financing for projects supporting
European Union policy objectives totalled EUR 37 billion (up 13% on
1999). EUR 31 billion went to projects within the EU Member States and
close to EUR 3 billion to those in the Accession Countries, while
lending in other countries ran to EUR 3 billion. To fund these
activities, the EIB borrowed EUR 32 billion on the world's capital
markets.
In the Mediterranean region the EIB operates under the
Euro-Mediterranean Partnership, which complements the EU Member
States' own bilateral co-operation policies. Under the second
financing mandate of the Euro-Med Partnership covering the period
2000-2006, the EIB is to provide EUR 6 425 million for projects in the
12 Mediterranean countries, which have signed co-operation or
association agreements with the EU. The EIB is giving a particular
focus to supporting efforts to develop a more open economy and to
assist companies in preparing for market liberalisation, with a view
to the progressive establishment of a free-trade area with the EU.
Further to the Barcelona European Council (15-16 March 2002),
the EIB is set to increase cooperation with the Mediterranean Partner
Countries by establishing a "Euro-Med Investment Facility and
Partnership" (EMIFP) complemented by EIB representation in the
region. Operational by Autumn 2002, this Facility foresees increased
financial resources, leading the EIB to expand gradually its annual
lending in the region from EUR 1.5 billion to EUR 2 billion.
Since 1995, the EIB has contributed some EUR 800 million towards
projects of key importance for the Turkish economy. EIB finance for
infrastructure went mainly for environmental projects and the
earthquake reconstruction effort. Among the projects financed in
Turkey are: the wastewater and effluent treatment systems in Adana,
Diyarbakir, Izmit and Tarsus; the desulphurisation equipment at the
Yeniköy power station on the Aegean coast and the construction of
more environment-friendly power and heating plants. The EIB has also
promoted SMEs through global loans to local commercial banks.
For further information, please contact the EIB's
Information and Communications Department (Mrs Helen
Kavvadia, tel.: +352 43 79 31 46, e-mail: h.kavvadia@eib.org).
(1) Conversion rates: EUR 1 = TRL 1,269,500 at
31.12.2001
