Ankara, Türkiye, 02 July 2025 – The Islamic Development Bank (IsDB), the premier multilateral development bank of the Global South, and the Republic of Türkiye have signed a EUR 200 million financing package to support sustainable municipal infrastructure development across major cities, including those in provinces affected by the February 2023 earthquakes.

The agreements, signed in Ankara on 2^nd July 2025, comprise two financing operations: a first one for the reconstruction of infrastructure in earthquake-hit regions amounting EUR 150 million signed by Mr. Kerem Dönmez, Director General of Foreign Economic Relations, Ministry of Treasury and Finance of Türkiye and Dr. Walid Abdelwahab, Director of IsDB Group Regional Hub Türkiye (RHT) and a second one for the improvement of urban transport systems amounting EUR 50 million signed by Mr. Recep Türk, Director General of İller Bankası A.Ş. (ILBANK) and Dr. Walid Abdelwahab, RHT Director.   

The signing marks a key milestone in the implementation of the “Municipal Infrastructure for Recovery and Resilience Project,” which aims to strengthen municipal services and climate resilience in cities, particularly those affected by the February 2023 earthquakes.

At the signing, Mr. Kerem Dönmez welcomed this collaboration with the Islamic Development Bank and reiterated that the project would not only accelerate Türkiye’s post-earthquake recovery efforts but also ensure the country’s resilience and readiness to face future challenges.

Mr. Recep Turk highlighted that this new collaboration between ILBANK and IsDB is testimony to a successful cooperation, started more than 20 years ago, to support municipalities in achieving progress towards sustainable development.

Dr. Walid Abdelwahab stated that the agreements reflect the IsDB Group’s unwavering commitment to supporting Türkiye’s recovery and long-term resilience. “We are proud to partner with the Government and ILBANK on this transformative project that will directly benefit millions of residents in the target cities," he said.

The project will finance critical investments in water supply, wastewater treatment, solid waste management, and climate-resilient urban transport infrastructure, which will support Türkiye’s broader efforts to recover from recent natural disasters and to build back stronger, greener, and more inclusive urban services delivery systems.

This support will be channeled to municipalities through İller Bankası (ILBANK), a long-standing partner of IsDB and the main institution supporting the development of municipalities in the country.

Building on an initial collaboration in 2005 to support wastewater treatment in the two major cities of Yalova and Bolu and the subsequent successful implementation of the Urban Transport Program for Türkiye, approved by the Bank in 2016, this new project expands the target sectors to support investments in critical infrastructure services such as water, sanitation and waste management that will improve the living conditions for millions of inhabitants in the target cities.

Implementation is set to begin later this year. When completed, the project will enable hundreds of thousands of households and millions of inhabitants to benefit from enhanced water and wastewater networks, improved solid waste management, and safer, greener, and more reliable public transport services.

This initiative marks yet another significant achievement under the Country Engagement Framework 2024-2026, agreed between IsDB Group and Türkiye, a founding member of the IsDB. It aligns well with the objectives set by the Government in the 12^th Development Plan and supports the country's 2053 Net Zero Emissions Objectives.

The financing operation signed with ILBANK will also catalyze to development of participation financing products, enabling municipalities to access participation finance through ILBANK for the first time.

For more information, please visit: www.isdb.org or contact:

Oussema Trigui, Operations Team Leader, IsDB

Email:  OTrigui@isdb.org

M.A. DinMohammadi, Regional Communications Officer, IsDB

Email: mdinmohammadi@isdb.org

About Islamic Development Bank (IsDB) Group 

Rated AAA by the major rating agencies of the world, the Islamic Development Bank is the pioneering multilateral development bank (MDB) of the Global South that has been working for over 50 years to improve the lives of the people and communities it serves by delivering impact at scale. The Bank brings together 57 Member Countries across four continents, touching the lives of nearly 1 in 4 people worldwide. It is committed to addressing development challenges and promoting collaboration to help achieve the United Nations Sustainable Development Goals (SDGs) by equipping people to drive their own green economic and sustainable social progress, putting planet-friendly infrastructure in place, and enabling them to fulfil their potential. Headquartered in Jeddah, Kingdom of Saudi Arabia, IsDB has 10 regional hubs and a center of excellence.  Over the years, the Bank has evolved from a single entity into a group comprising: the Islamic Development Bank (IsDB), the Islamic Development Bank Institute (IsDBI); the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC); the Islamic Corporation for the Development of the Private Sector (ICD); the International Islamic Trade Finance Corporation (ITFC); and the Islamic Solidarity Fund for Development (ISFD).