Announcement of The World Bank's Privatization Implementation Assistance and Social Safety Net Project in Turkey on May 4, 1994

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 94/83 Contact: Peter Riddleberger Tel: 202-473-1786 Turkey Privatization Implementation Assistance and Social Safety Net Project The following is information on a project approved by the World Bank's Board. DATE: May 5, 1994 WORLD BANK GROUP SUPPORT: World Bank loan: $100.0 million. The World Bank loan is for 17 years, including five years of grace, with a variable interest rate, currently 7.27 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: $ 129.0 million. OTHER PROPOSED FINANCING: Government of Turkey: $29.0 million. IMPLEMENTING AGENCY: Prime Ministry, Republic of Turkey. ESTIMATED COMPLETION DATE: 1998 PROJECT DESCRIPTION: The objective of the Privatization Implementation Assistance and Social Safety Net Project is to promote efficiency and produc- tivity in the economy, and facilitate the further development the private sector. The project includes: (a) support for privatization, including the preparation and implementation of privatization transactions; a public information campaign to promote the government's privatization agenda and broaden public support; the strengthening of the Public Participation Adminis- tration; and the strengthening of the capacity of the treasury to manage the debt liabilities of state-owned enterprises (SOEs) to be privatized; (b) social safety net measures, including labor adjustment programs to determine the extent of labor displacement in individual SOEs, assess the demand for labor services, and provide counseling, retraining, and small business assistance through local institutions; the strengthening of institutions responsible for labor programs; and studies to analyze option for the reform of social insurance/pension systems in Turkey; (c) the preparation of a regional development plan to diversify the economic base of the Zonguldak Region, where a high concentration of layoffs in steel and coal mining operations is likely; and (d) studies to develop a regulatory framework for the privatization of the telecommunications sector and establish a coordinated strategy for the private provision of infrastructure services.