The European Investment Bank (EIB), the European Union's financing institution, is lending EUR 70 million (1) to the Ministry of Industry and Trade and three Turkish banks (Industrial Development Bank of Turkey, SKB; Industrial Investment Bank, SYB; and Vakifbank) for investment in pollution abatement measures envisaged at reducing industrial pollution in Turkey.
Typical investments foreseen to be financed through this facility are wastewater treatment plants and related wastewater collection systems, air pollution abatement measures and industrial process improvements that have a clear pollution abating effect.
Investment projects will be analysed by all intermediaries on a project specific basis and according to standard evaluation. The intermediaries will take the credit-risk of the sub-loans, on-lent in foreign exchange.
The impact of the project on the environment will be highly positive by avoiding or mitigating negative environmental impacts of vital industrial activity.
The EIB is also advancing a EUR 80 million loan to BUSKI (Bursa Water and Wastewater Administration) for the extension on Bursa's sewer and stormwater network, and the establishment of biological waste water treatment facilities.
Bursa is a large and rapidly expanding city with current population at around 1.3 million, situated in the South-eastern Marmara region in Turkey. The population is forecast to reach some 2.2 million within the project's planning horizon until the year 2020.
Both projects will benefit from a 3 per cent interest rate subsidy from the Community budget according the MEDA Regulation.
(1) Conversion rates: EUR 1 = 0.596700 GBP, 0.87650 USD, 582.224 TRL.