Turkey - Municipal Services Project

Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.:AC1122 Date ISDS Prepared/Updated: July 17, 2003 I. BASIC INFORMATION A. Basic Project Data Country: Turkey Project ID: P081880 Project Name: Municipal Services Project Task Team Leader: Sudipto Sarkar Estimated Appraisal Date: June 1, 2004 Loan/Credit amount ($m.): IBRD: 200 Estimated Board Date: January 18, 2005 Managing Unit: ECSIE Lending Instrument: Adaptable Program Loan Sector: General water, sanitation and flood protection sector (70%);Sub-national government administration (30%) Theme: Municipal finance (P);Other urban development (P) Safeguard Policies Specialists in the task team: Mr. Sudipto Sarkar Other financing amounts by source: Counterpart funds from utilities and Government $ 70 m. B. Project Objective The objective of the project would be to create a sustaining financing mechanism in Iller Bank to support municipal investments and service. Iller Bank is registered as a development bank but it does not function as a bank due to systemic problems such as lack of independence in operations and incentives for municipalities and utilities to act in a fiscally responsible manner. Further, the lack of long-term capital in the country hinders the operations of the bank. The above investment operation would be complemented by the Bank