Turkey - Gas Sector Development Project

Page 1 PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB1760 Project Name GAS SECTOR DEVELOPMENT Region EUROPE AND CENTRAL ASIA Sector Oil and gas (100%) Project ID P093765 Borrower(s) BOTAS, TURKEY Implementing Agency BOTAS Bilkent Plaza, 4. Cadde A-1 Blok, Bilkent Turkey 06530 Tel: +90 312 297 2295 Fax: +90 312 266 0619 Environment Category [X] A [] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared September 9, 2005 Date of Appraisal Authorization September 7, 2005 Date of Board Approval December 13, 2005 1. Country and Sector Background Turkey has gone through a number of fiscal crises in the recent years, and consequently embarked upon a path of economic and financial recovery . Since 2001, GNP has grown at a fast pace, by 5.9% in 2003 and 9.6% in 2004. The inflation rate has been in single digits for the first time in many years in 2004. Other indicators of economic performance such as level of outstanding debt are also improving. Turkey is also scheduled to begin negotiations for accession to the European Union in October 2005, an indicator that its program of reforms is being sustained. The energy sector, and particularly the natural gas sector, is a key driver in Turkey