ISTANBUL

The Islamic Development Bank (IsDB) and Türkiye signed a €200 million ($235 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 2nd July 2025, comprise two financing operations: a first one for the reconstruction of infrastructure in earthquake-hit regions amounting €150 million signed by Kerem Donmez, Director General of Foreign Economic Relations, Ministry of Treasury and Finance of Türkiye and Walid Abdelwahab, Director of IsDB Group Regional Hub Türkiye (RHT) and a second one for the improvement of urban transport systems amounting €50 million signed by Recep Turk, Director General of Iller Bankasi (ILBANK) and Walid Abdelwahab, RHT Director," a statement from the bank said.

The bank noted that 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

In order to support Türkiye's larger efforts to recover from recent natural disasters and to rebuild stronger, greener, and more inclusive urban services delivery systems, the project will finance crucial investments in water supply, wastewater treatment, solid waste management, and climate-resilient urban transport infrastructure.

Through ILBANK, a longstanding partner of IsDB and the primary organization assisting with the development of municipalities in the county, this help will be distributed to municipalities.

This new project broadens the target sectors to support investments in vital infrastructure services like water, sanitation, and waste management that will improve the living conditions for millions of residents in the target cities.

It builds on an earlier partnership in 2005 to support wastewater treatment in the two major cities of Yalova and Bolu, as well as the successful implementation of the Urban Transport Program for Türkiye, which was approved by the Bank in 2016, the statement said.