EBRD loan to improve water services in earthquake-affected Gaziantep

This article is brought to you in association with EBRD.

• Loan to finance the construction of a drinking-water treatment plant in Gaziantep
• Project to alleviate pressure on the city in the face of a growing population
• EBRD continues to support the earthquake-affected region in its reconstruction efforts

The European Bank for Reconstruction and Development (EBRD) is providing a sovereign loan of up to €110 million to Türkiye, through the Ministry of Treasury and Finance. Iller Bankasi, the authorised body responsible for disbursing all critical municipal infrastructure financing by international financial institutions in the earthquake-hit region, will be the implementing agency in supporting the Gaziantep Water and Sewage Administration (GASKI) in constructing a drinking-water treatment plant in Düzbağ, Gaziantep.

Following the devastating earthquakes of 2023, the city of Gaziantep has seen a large influx of migrants from other cities in the region, which has weighed on the city’s critical infrastructure. The city is also host to a high number of Syrians under temporary protection, putting further pressure on municipal services.

One of the primary challenges in the city remains its insufficient water treatment capacity, due to population growth and increased demand from industry and agriculture. The city’s existing water treatment plant is no longer capable of meeting this higher demand, putting the sustainability and quality of drinking-water services at risk.

With EBRD support, the project will enable the construction of the Düzbağ Drinking Water Treatment Plant, with a capacity of 700,000 m3/day, giving the city’s residents better access to clean drinking water.

The project comes under the EBRD’s Green Cities programme and is the first investment following on the Gaziantep Green City Action Plan, which the city recently completed with the Bank’s support.

Odile Renaud-Basson, the EBRD President, said: “At the EBRD, we recognise the long-term commitment required to rebuild the region after last year’s devastating earthquakes. We are proud to be pushing the boundaries of what international financial institutions can achieve in the affected cities by fostering partnerships with the private sector and local governance bodies. This project, as part of Gaziantep’s participation in EBRD Green Cities, addresses a critical need – access to clean drinking water – which is fundamental to any further recovery efforts. We look forward to deepening our engagement in the region, contributing to its reconstruction and supporting sustainable projects for the future.”

Mehmet Şimşek, Minister of Treasury and Finance, said: “We are grateful for the EBRD’s strong support for our reconstruction efforts in the earthquake region. The provision of the €110 million loan for the “Düzbağ Drinking Water Treatment Plant Project”, which is critical in meeting Gaziantep’s clean water needs, is a good example of EBRD’s Green Cities programme.

Gaziantep deserves such an investment, because it is one of Türkiye’s most vibrant and diverse provinces.”

ILBANK Director General Recep Türk stated: “After the earthquakes, ILBANK immediately engaged in financing negotiations with international financial institutions to support the earthquake-affected regions. As the implementing agency for this project, we are pleased that financing is now being provided by the EBRD. The loan agreement between the Ministry of Treasury and Finance of the Republic of Türkiye and the EBRD, with a budget of €110 million, represents an important milestone for improving essential infrastructure in Gaziantep. Through this project, ILBANK will manage and coordinate the construction of the new drinking-water treatment plant, which will enhance access to clean drinking water, critical to the city’s recovery and future resilience.”

Following the earthquakes, the EBRD announced a €1.5 billion investment package aimed at supporting the recovery and reconstruction of the region. Sustainable infrastructure is one of the Bank’s key priorities in the area.

The EBRD is among Türkiye’s key investors, with more than €21.1 billion committed through 461 projects and trade finance limits since 2009, most of it in the private sector.