Turkey: EUR 600 million for the knowledge economy and the environment

The European Investment Bank announced today in Istanbul that it is providing under two agreements a total of EUR 600 million to support the knowledge economy and the environment in Turkey.

The two agreements, signed during the European Investment Bank’s annual regional forum on measures to achieve smart growth in Turkey, are as follows:

1.  A EUR 450 million loan for research and innovation capacity in Turkey

The EIB funds, channelled through the Turkish Undersecretariat of Treasury, will co-finance the Turkey's national contribution to the science and technology programmes implemented by the Scientific and Technological Research Council (TÜBITAK).  The aim is to promote the integration of the Turkish Research Area into the common European Research Area.  The science and technology programmes have a national reach and are mainly located in the country's major urban centres.  The programmes will be implemented in 2010 and 2011.

2.  A Memorandum of Understanding for EUR 150 million for small and medium-sized municipal environmental schemes

The MoU is a formal expression of cooperation between the EIB and Iller Bank. The lending agreement will be signed at a later stage.  The EIB funds will finance investment schemes in the water and solid waste sector throughout Turkey, with Iller Bank as an intermediary providing both financial and technic al services to municipalities.  The project will co-finance schemes benefiting from IPA grants and potentially World Bank loans.  The operation will be an important instrument in advancing Turkey’s adherence to the environmental standards and policies of the European Union.

EIB Vice-President Matthias Kollatz-Ahnen signed the agreements in support of R&D with Mr Cabit Dağdaş, Deputy Undersecretary of Treasury, and in support of environmental investments at municipal level with Mr Hidayet Atasoy, General Director of Iller Bank.

“It is a great pleasure for me to put into practice, within just a few hours, initiatives from today’s forum on how to achieve smart growth in Turkey,” said Mr Kollatz-Ahnen. "The foundations for such growth have been identified: innovation and infrastructure, and with these agreements today, we have made a decisive step in this direction.”

The EIB event served as a forum for exchanging best practices and discussions on potential joint initiatives aimed at maximising sustainable growth potential in Turkey. 

Note to the editor:

About the EIB Group

The EIB Group comprises the European Investment Bank (EIB) and the European Investment Fund (EIF). 

About the EIB

The European Investment Bank was created by the Treaty of Rome in 1958 as the long-term lending bank of the European Union.  The Bank’s remit is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States.  The EIB raises substantial volumes of funds on the capital markets which it lends on favourable terms to projects furthering EU policy objectives. It continuously adapts its activity to developments in EU policies.

About EIB activity in Turkey

In 2009, the EIB provided total lending of EUR 2.6 billion, which is well above the non-crisis level of EUR 2 billion per year.  The Bank reinforced its activity according to the three pillars that have been set as strategic objectives: (i) financing of infrastructure, both at national level and in favour of local authorities, (ii) supporting SMEs through credit lines with a number of banking partners and (iii) financing of the corporate sector, especially in favour of energy and renewables as well as foreign direct investment.