Announcement of Two Million Three Hundred Thousand Dollars Credit and Thirty-Seven Million Dollars Loan to Turkey for Istanbul Urban Development and Water Supply Projects on July 5, 1972

INTERNA1.,I0NAL BANK FOR RECONSTRUCTION AND DEVELOPMENT IN'TERNATIONAL DEVELOPMENT ASSOCIA,..rION 1818 H STrEET, NW WASHINGTON D.C.20433 TELEPHONE: EXECL,;T(VE 3-6360 Bank Press Release No. 72/53 Subject: $2.3 million credit and $37.0 IDA Press Release No. 72/45 million loan to Turkey for ~Tuly 5, 1972 Istm:ibul urban development and water supply projects The International Developmen·t Association (IDA), an affiliate of the World Bank, has approved a $2 .3 million credit for a $3.3 million project to. prepare an integrated development program for Istanbul in a form su:Hable for Government approval and action and to prepare projects to meet critical needs in the Istanbul area. In conjunction with this project the World Bank has approved a $37.0 million loan for a $85.1 million equivalent project that will expand and improve the water supply system of Istanbul, which has lagged behind • rapidly increasing demand • The urban development project to be financed by the IDA credit is intended to lay some of the basic groundwork for properly planned, comprehensive and coordinated metropolitan growth of Istanbul. The IDA credit will help the Turkish authorities to establish a coordinated program for implementing develop- ment 'objectives for the atea, develop investment priorities, and prepare prior- ity projects including institutional measures for project implementation. Installed water systems in Istanbul have not kep~ pace with demand, capacity is inadequate and service intermittent. The Bank-assisted water supply project will help correct the defi~iencies. It is a major part of the city's on-going 1972-1976 water supply expansion program and is based on a master plan prepared under the auspices of the United Nations Development Programme and ~f the World Health ·Organization. The project includes expansion of the water treatment, transmission, pumping and distribution systems for the entire· Metropolitan Area. It also includes consulting services to assist the Istanbul Water Administration and the State Hydraulic Works (the national agency responsible for water source • development in the project) • The Bank loan is for a 25-year term, including five years of grace, at 7~% interest per annum. The IDA credit is for 50 years, including a 10-year grace period, and is interest (ree except for a 3/4 of 1% service charge to cover IDA's administrative expenses.  ~· ' • July 5, 1972 TECHNICAL DATA PROJECT: Istanbul urban development COUNrRY: Republic of Turkey TOTAL COST: $3.3 million equivalent I:JA 'FINANCING: $2.3 million, 50 years, 10 years of grace, interest free except for 3/4 of li. service charge to cover IDA's admini- • strative expenses. OTHER FINANC I.NG : Turkish Government IMPLEMENTING ORGANIZATION: Ministry of Reconstruction and Resettlement, Ankara, Turkey .. PROJECT DESCRIPrION~ Preparation, in a form suitable for the Government's approval and impiementation, of an integrated program of action to meet the long-term urban needs of the Istanbul Metropolitan Area., an urban ,transport/land use model, and high priority projects designed to alle- viate existing_ problems in suc_h areas. P~vCUREMENT: Consultant advisory services; training, fellowships and seminars; equipment and vehicles. Consultants' contracts to be agreed upon by the Turkish Government and IDA. CONS\r(4UNTS: To be selected. ESTIMATED COMPLETION DATE: late 1975. - 0 - • • July 5, 1972 TECHNICAL DATA PROJECT:: Istanbul water supply COUNTRY: Republic of Turkey TOTAL COST: $85.1 million RA~"K FINANCING: $37.0 million, 25 years, 5 years of grace, 7\1 interest per annwn. OT.HER FINANCING: Turki~h Government, internal cash generation, capital contribu- tions by consumers. • IMPLEMENTING ORGANIZATIONS: Istanbul Water Administration (ISI), (Istiklal Caddesi, Beyoglu, Istanbul, Telephone: 45-05-30) -- construction of dis- tribution system; State Hydraulic Works (DSI), · (Yucetepe Mahallesi, DSI Ankara, Telephone.: 18-34-15) -- all other project construction. PROJECT DESCRIPrION: Expansion of Istanbul's water treatment, transmission, pwnping and distribution systems; technical assistance. P.RQCUREMENT: Pumping stations, treatment plantsi reservoirs, transmission and distribution pipelines., Bosporus underwater pipeline, telemetering systems, water meters, operation and mainteuance equipment, technical assistance. Bank-financed contract~ to be awarded on basis of international competi- tive bidding wi~h 151 preference for Turkish suppliers. CONSULTANTS: Management, accounting, engineering consultants for ISI to be selected. Engineering consultants for DSI for: treatment plants - Tahal (Israel); transmission pipelines~ Bergeron (France); Bosporus Pipeline Crossing· to be selected. ESTIMATED COMPLETION DATE: 1976 - 0 - •