Announcement of Turkey Technology Development Project on March 4, 1991

FOR IMMEDIATE RELEASE Norld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 91/49 Contact: Richard Kollodge Tel: (202) 473-1792 TURKEY: TECHNOLOGY DEVELOPMENT PROJECT Following are details of a project approved by the World Bank's Board: DATE: March 4, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $100.0 million. The loan is for 17 years, including 5 years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $262.2 million OTHER FINANCING: Government of Turkey, $6.2 million; Private sector investors, $131.3 million; Development banks, $4.0 million; Turkish Standards Institute, $7.6 million; IFC, $5.1 million; Bilateral donors, $4.4 million; Multilateral donors, $3.5 million IMPLEMENTING AGENCY: Turkish Standards Institute; Scientific and Technical Research Organization of Turkey. ESTIMATED COMPLETION DATE: 1996 PROJECT DESCRIPTION: The objectives of the "Technology Development Project" are to: (a) develop the metrology, standards, testing, and quality system (MSTQ) to international standards by strengthening key public sector institutions and by establishing a framework for greater private sector participation in the system; (b) make research and development market-driven by financing projects on a matching basis with the private sector; and (c) develop the venture capital industry by rationalizing the tax environment and establishing a role model company. The project will finance investments in: (a) laboratories, measurement equipment, and training for TUBITAK; (b) the development plan of the Turkish Standards Institution, including a calibration, testing, and a training facility in Istanbul; (c) the start- up costs of a National Accreditation Council to support a private testing and certification industry; and (d) the start-up costs of a Professional Institute for Quality Assurance, and a national media campaign for quality education. The project will also support a research and development program, to be managed by an independent foundation, that will provide funding for strategic studies on the competitiveness of key industries in relation to economic and technological changes occurring in the international market, as well as funding for industrial technology development challenge programs involving a mix of applied research, development of training programs and information services, international joint ventures for technology transfer, and so on. In addition, the project will support development of the venture capital industry by introducing, under the Capital Market Board, a supportive legal and regulatory framework consistent with the model in other OECD countries, rationalizing the tax system in the industry, and establishing a model private venture capital management company.