Ankara: The Islamic Development Bank (IsDB) has entered into a significant agreement with Trkiye, providing a financing package of $235 million to enhance sustainable municipal infrastructure in key cities, particularly in regions impacted by the February 2023 earthquakes.
According to Anadolu Agency, the agreements were formalized in Ankara on July 2, 2025. They include two financing operations: the first, amounting to £150 million, focuses on reconstructing infrastructure in earthquake-affected areas. This agreement was signed by Kerem Donmez, Director General of Foreign Economic Relations at Trkiye's Ministry of Treasury and Finance, and Walid Abdelwahab, Director of IsDB Group Regional Hub Trkiye (RHT). The second operation, valued at £50 million, aims to enhance urban transport systems and was signed by Recep Turk, Director General of Iller Bankasi (ILBANK), alongside Walid Abdelwahab.
The Islamic Development Bank stated that this signing represents a significant step in the 'Municipal Infrastructure for Recovery and Resilience Project,' which seeks to bolster municipal services and climate resilience in cities, especially those impacted by the February 2023 seismic events.
The project aligns with Trkiye's broader recovery efforts from recent natural disasters, focusing on building robust, sustainable, and inclusive urban service delivery systems. It will invest in essential areas including water supply, wastewater treatment, solid waste management, and climate-resilient urban transport infrastructure.
ILBANK, a key partner of IsDB and a leading entity in municipal development in Trkiye, will facilitate the distribution of this assistance to municipalities. The project aims to support vital infrastructure services such as water, sanitation, and waste management, significantly improving living conditions for millions in the targeted cities.
This initiative expands upon a partnership established in 2005, which aimed at supporting wastewater treatment in Yalova and Bolu, and follows the successful execution of the Urban Transport Program for Trkiye, approved by the bank in 2016.