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Page 1 1 TURKEY MUNICIPAL SERVICES PROJECT ENVIRONMENTAL FRAMEWORK BACKGROUND The above project will support the development of environmental investments in municipalities and will include: (a) rehabilitation and construction of water and sewerage networks; (b) rehabilitation and construction of water and wastewater treatment facilities; and (c) construction of landfill(s). IB will be the Borrower of the Bank loan and as a Financial Intermediary (FI) of the project it will be responsible for successful implementation of the project. The Bank loan proceeds will be utilized by IB to on-lend to the municipalities or municipal utilities. Specifically, IB will ensure that: