Turkey is one of the largest middle-income partners of the World Bank Group (WBG), and the 18th largest economy in the world. In less than a decade, per capita income in the country has nearly tripled and now exceeds $10,000.
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REGION: EUROPE AND CENTRAL ASIACOUNTRY: TURKEYFOCUS AREA: DISASTER RISK REDUCTIONResults & AchievementsThrough a disaster preparedness program supported by the World Bank Group and the Global Faci... Show More +lity for Disaster Reduction and Recovery, 1,086 public buildings have been retrofitted or reconstructed in Istanbul, including schools that serve more than 1.1 million students and teachers, and hospitals and clinics that serve about 8.7 million patients annually. 662,000 people were trained in disaster preparedness and an estimated 5.5 million citizens reached via social and public media through the Public Awareness and Neighborhood Community Volunteers program. In the course of the project, 3,630 civil engineers throughout the country were trained in the seismic retrofitting code. The back-up Disaster Management Center is operational, and Istanbul Governorship’s new main Disaster Management Center at Hasdal has been completed.Located on the vulnerable North Anatolian Fault, Istanbul is highly prone to earthquakes. The city’s high population and commercial and industrial density mean that frequent earthquakes can cause significant economic losses, damage, and human suffering.To protect the city from this risk, in 2005, the Governorship of Istanbul, with support from the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR), launched a comprehensive program to help the city prepare for and respond to earthquakes.In 1999, the 7.1 magnitude Marmara earthquake shook northwest Turkey, killing more than 17,000 people and causing $5 billion in damage. The earthquake significantly damaged Istanbul’s infrastructure. A major economic center and home to 15 million people, Istanbul is vulnerable to earthquakes that can have devastating consequences on the economy as well as human lives. To reduce damage from disasters like Marmara, the Istanbul Seismic Risk Mitigation and Emergency Preparedness Project (ISMEP) was conceived in 2005 to enhance preparedness, strengthen critical infrastructure, and improve institutional and technical capacity for disaster risk management and emergency response. ApproachGFDRR provided technical and advisory support to the $1.2 billion ISMEP project, which includes $550 million in World Bank financing. To reduce seismic risk, the project pioneered an innovative approach that combined: risk reduction investments such as the reconstruction of public buildings; broader programs including public awareness campaigns; and investments that strengthen disaster response. Project activities focused on:Enhancing emergency preparedness including updating emergency communication and information systems and technology, a “Safe Life” public awareness campaign communications strategy and workshops for individuals and corporations, as well as a state-of-the-art disaster management center that serves as a control center for emergency response. Retrofitting or reconstruction of priority public buildings (schools, hospitals, dormitories, administrative and social service buildings) to reduce seismic risk. Supporting the enforcement of building codes to ensure that they comply with seismic-resistant design standards.Lessons LearnedSetting up a strong, highly knowledgeable local team is key to successful implementation. Projects have greater chances of success when they are implemented by local authorities, engineers, and managers with experience working on earthquake reconstruction projects, and who have extensive knowledge about city and national regulations. The ISMEP program established a Project Coordination Unit as an independent team of experienced local experts to fulfill financial and technical requirements for the projects.Increasing public awareness is critical to build public support for upgrading schools. While schools are being retrofitted, students will be required to temporarily relocate to other students. To gain public support for the retrofitting of schools, seminars, and trainings were prepared for students, parents, teachers, and administrative staff to inform them of the benefits of the changes once schools are upgraded.Next StepsBuilding on the lessons learned from ISMEP, the Government of Turkey plans to continue to expand the disaster risk management agenda to other high-risk areas of the country. In this context, the Government will develop a National Disaster Risk Management Program (NDRMP) which will serve as a multi-stakeholder platform providing guidance to a wide range of institutions for preparing risk reduction projects. The program will facilitate funding from a wide range of sources, including the national budget, international financing institutions, and the private sector. The lead agency for this program will be the Disaster and Emergency Management Presidency (AFAD). Show Less -
The Stories of Impact series highlights work involving the Global Facility for Disaster Reduction and Recovery (GFDRR) that has helped to reduce developing countries' vulnerability to natura... Show More +l hazards and build communities' resilience.Enhancing Seismic Preparedness in IstanbulA disaster preparedness program supported by the World Bank Group and the Global Facility for Disaster Reduction and Recovery has helped earthquake-vulnerable Istanbul retrofit or rebuild over 1,000 public buildings. Read moreRapidly Assessing Flood Damage in Uttarakhand, IndiaGFDRR and partners conducted a Joint Rapid Damage Needs Assessment (JRDNA) for the Uttarakhand region soon after the devastating 2013 monsoons, completing a thorough analysis of damage and providing the necessary foundation for recovery efforts to begin. Read moreAssessing Post-Disaster Needs in NigeriaAfter severe flooding in 2012, Nigeria asked GFDRR and other key partners to conduct a comprehensive Post-Disaster Needs Assessment (PDNA). Read moreCommunity-Based Disaster Risk Reduction in NigerGFDRR and partners have financed an almost $1 million disaster risk reduction project in Niger to build capacity of local communities for early warning and response. Read moreStrengthening Financial Resilience in the PacificIn response to requests from 15 countries, the World Bank, GFDRR, and other partners formed the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI) in 2007 to help mitigate disaster and climate change risk. Read moreDisaster-Proofing the Transport Sector in VietnamThe government of Vietnam, with support from GFDRR and the World Bank, has made important strides in building the resilience of the transport sector against risk from natural disasters and climate change. Read moreManaging Drought, Sustaining Growth in DjiboutiDjibouti is at particular risk for water shortages and severe flooding, both of which profoundly impact its growing but fragile economic sector. GFDRR is helping the country build resilience. Read more Show Less -
IBRD Loan: US $500.0 million equivalentTerms: Maturity: 15.5 years, Grace = 8.5 yearsProject ID: P146322Project Description: The objective of the project is to support reforms around the followin... Show More +g: improving the business climate and enhancing transparency, boosting labor force participation and widening access to finance and deepening Turkey’s infrastructure reforms. Show Less -
WASHINGTON, July 24, 2014—The World Bank’s Board of Executive Directors today approved a Sustaining Shared Growth Development Policy Loan (SSG-DPL) for Turkey in the amount of Euro 367.40 million (US$... Show More +500 million equivalent).The DPL is grounded in the development goals of Turkey and is the first in a series of two Development Policy Loans. It aims to support Turkey’s goal of continued socially and environmentally sustainable growth, which is key to fostering shared prosperity in the country.“Turkey’s growth record over the past decade has been inclusive, however, these gains are at risk in a less accommodating international environment,” said Martin Raiser, World Bank Country Director for Turkey. “With this DPL, the World Bank supports structural reforms that aim to ensure Turkey’s success in raising incomes, creating jobs, and building sustainable infrastructure continues.”The DPL supports reforms in the areas of enhancing competitiveness and improving transparency; sustaining job creation and boosting female employment; increasing financial inclusion; and creating a regulatory framework to attract long-term, quality investment in the country’s infrastructure. Specifically, the policies, strategies, and reform actions supported under the SSG-DPL program target the following outcomes: Pillar A: a reduction in informal employment, increases in the number of firms undergoing independent audits, new patent applications, corporate bond issuances, and an increase in the number of tax payers filing income tax; Pillar B: increases in the female labor force participation rate, public and private credit bureau coverage, depositors in commercial banks, and in the leasing penetration rate, and the introduction of auto-enrollment into private pensions; Pillar C: increased private sector investment in new electricity generation capacity, a decrease in the share in gas imports of the Petroleum Pipeline Corporation (BOTAS), the functioning of the Energy Markets Operation Corporation (EPIAS) as an independent company with equity participation by Borsa Istanbul and electricity and gas market participants, and the licensing of at least one private sector freight operator to operate on Turkish State Railways (TCDD) infrastructure.The SSG-DPL is an IBRD Flexible Loan with an interest rate equal to 6 months EURIBOR term plus a variable spread, with a final maturity of 15.5 years, including an 8.5 year grace period. Show Less -
WASHINGTON, July 22, 2014—The World Bank’s Board of Directors today approved a US$250 million equivalent loan for the Innovative Access To Finance Project for Turkey whose main development objective i... Show More +s to improve access to longer-term Islamic finance and to factoring for small- and medium-enterprises (SMEs) and export-oriented enterprises (EOEs).*The project will be implemented by Türkiye Sinai Kalkınma Bankasi (TSKB) as borrower, with a government guarantee. TSKB will intermediate the loan through participation banks and factoring companies targeting SMEs and EOEs. The project has two sub-components:Sub-component 1 will focus on Islamic finance (estimated at US$160 million), andSub-component 2 will focus on factoring (estimated at US$90 million).“Turkey’s SMEs are the motor of its economy, however, they still face greater constraints in accessing finance than larger companies,” said Martin Raiser, World Bank Country Director for Turkey, on the occasion of the loan approval. “The World Bank has supported the development of long-term finance in Turkey with over US$4 billion in commitments over the past decade.”Raiser added that “As domestic financial markets are becoming more sophisticated, we, ourselves, are switching to innovative financing instruments. Islamic finance is based on the principles of risk-sharing and asset backing, a component of trade, rather than risk-transfer, as seen in conventional banking. Together with factoring, they provide attractive alternatives to traditional bank loans by alleviating constraints for SMEs related to the lack of collateral and credit history.” The lending instrument for the Innovative Access to Finance Project is an IBRD variable spread loan, with a total maturity of 28 years, including a grace period of 7 years. Repayment will be linked to commitment, with a level repayment pattern.* For the purpose of this project, SMEs are defined as firms that employ fewer than 250 people and have annual turnover or asset size of less than TL40 million, and EOEs as exporting firms that employ fewer than 1,000 people. Show Less -
IBRD Loan: $250.0 million equivalentTerms: Maturity = 28 years, Grace = 7 yearsProject ID: P147183Project Description: The objective of the project is to improve access to longer-term Islamic fin... Show More +ance and to factoring for small- and medium-enterprises and export-oriented enterprises. Show Less -