Turkey - Municipal Services Project

Page 1 PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB1052 Project Name Municipal Services Project Region EUROPE AND CENTRAL ASIA Sector General water, sanitation and flood protection sector (70%);Sub- national government administration (30%) Project ID P081880 Borrower(s) Iller Bank; Sovereign guarantee provided by Treasury Implementing Agency Iller Bank; Environment Category [ ] A [ ] B [ ] C [X ] FI [ ] TBD (to be determined) Safeguard Classification [ ] S 1 [ ] S 2 [ ] S 3 [X ] S F [ ] TBD (to be determined) Date PID Prepared April 15, 2005 Date of Appraisal Authorization April 18, 2005 Date of Board Approval June 23, 2005 1. Country and Sector Background On December 17, 2004, the European Union (EU) invited Turkey to begin negotiations in October 2005 to be member of the union. This agreement is a significant event for the country and shows Turkey