Input:
2. Parties shall ensure that a gender-sensitive interpretation is given to each of the Convention grounds and that where it is established that the persecution feared is for one or more of these grounds, applicants shall be granted refugee status according to the applicable relevant instruments.

3. Parties shall take the necessary legislative or other measures to develop gender sensitive reception procedures and support services for asylum-seekers as well as gender guidelines and gender-sensitive asylum procedures, including refugee status determination and application for international protection. **”** In order to respond the need in this area, as one of the standards mentioned in many international guidelines such as IASC, IAWG, and MISP, planning and coordination is aimed with the establishment of the GBV Sub-Group.

**II.** **Definition of Gender-Based Violence**

_Gender-based violence_ as defined in the IASC Guidelines for Addressing Gender-Based Violence in Humanitarian Settings “is an umbrella term for any harmful act that is perpetrated against a person’s will, and that is based on socially ascribed (gender) differences between male and females”. It includes acts that inflict physical, mental, sexual harm or suffering, as well as threats of such acts, coercion and other deprivations of liberty.

GBV shall be understood to comprise, but not be limited to:

1. Physical, sexual and psychological violence occurring **in the family**, including
battering, sexual exploitation, sexual abuse of children in the household, dowry-related violence, marital rape, traditional practices harmful to women, non-spousal violence and violence related to exploitation.

2. Physical, sexual and psychological violence occurring **within the general community**, including rape, sexual abuse, sexual harassment and intimidation at work, in educational institutions and elsewhere, as well as trafficking in women, girls, boys and men, and forced prostitution.

3. Physical, sexual and psychological violence **perpetrated or condoned by the State**
**and institutions**, wherever it occurs.

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Input:
**1.** **Objectives of the GBV Sub-Working Group**

1. To establish a multi-sectoral sub-group which focus on all GBV related issues in and

out of camp population at humanitarian settings 2. To consolidate, coordinate, improve and support the activities of all relevant stakeholders in the prevention of and response to GBV within the context of humanitarian action in Turkey.
3. To improve access to relevant information to support operations, advocacy and awareness raising needs through different trainings and workshops.
4. To promote best practice in the emergence of a shared vision and strategic framework, integrated strategies, coordinated activities, and common protocols used nationally and globally in humanitarian crises in GBV.
5. To support/assist the establishment of referral mechanisms and Standard Operational Procedures (SOPs) for GBV cases in collaboration with all actors including the NGOs and government institutions and to make sure that these procedures are in place.
6. To build/enhance the capacity of GBV partners by ensuring processes and procedures are clearly explained and understood, providing standard GBV resources, translating key guidelines if not available, conducting mapping of partners’ capacity to identify skills.

**III.** **The structure and membership of the GBV Sub-Working Group**

**1.** **Leadership**

The GBV Sub-Working Group will be chaired by UNHCR, co-chaired by UNFPA.
General Directorate of Women’s Status of the Ministry of Family and Social Policies as the key government institution to combat GBV in Turkey will support both UNHCR and UNFPA through their national and regional capacity.

**2.** **Membership**

a. In order to ensure a holistic and multi-sectoral approach in the prevention of and response to GBV, membership of the GBV Working Group will be extended to national and local government representatives, international and national NGOs, international organizations, and other entities providing services in the health, psychosocial, legal and security sectors.

b. Membership of national NGOs and entities shall be encouraged, in order to ensure sustainability of the sub-Working Group. Membership of national NGOs

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Input:
providing services in provinces, districts and/or at community level will be particularly encouraged.

**3.** **Meetings**

a. The GBV Sub-Working Group meetings will be held on Wednesdays of the second week of every month, after the Protection/Community Services Working Group meeting held in Gaziantep.
b. A draft agenda will be circulated to members of the Sub-Working Group at least five days before the regular monthly meeting, giving the members the opportunity to suggest additional items for discussion.
c. Draft minutes will be circulated within one week of the meeting.

**4.** **Reporting**

a. Members of the Sub-Working Group will submit a monthly brief report to the Chair, at the latest one week before the regular meeting.
b. The reports will highlight the GBV issues the members and their field counterparts are addressing, the challenges they are facing and highlight any issues that require action by the GBV Sub-Working Group. These issues will be discussed at the monthly meeting of the Sub-Working Group.
c. The reports will be shared with the relevant national and regional government institutions and NGOs for their future interventions.

**IV.** **(ToRs)/functions of the GBV Sub-Working Group**

1. In line with the TORs of the identified responsibilities, the Sub-Working Group will
consolidate, coordinate, improve and support the efforts and activities of all relevant stakeholders in the prevention of and response to GBV, within the context of humanitarian action in Turkey through: a. Mapping and updating relevant GBV prevention and response actors in focus areas (who, what, where); b. Liaising with national actors working in the sector to strengthen the coordination, information sharing, management/analysis of cases, data and referrals within the context of relevant national framework.
c. Ensuring that analyses are carried out on the GBV situations in focus areas and documented for all actors to use;

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d. Monitoring the established reporting and monitoring mechanisms to ensure coordination of efforts and activities of members and relevant stakeholders; e. Providing a forum for sharing information on activities, identifying needs and gaps in prevention and response, as well as for planning GBV inter-agency activities; f. Engaging in inter-agency, multi-sectoral field missions to assess programming successes and challenges and identify gaps in GBV programming; g. Facilitating and supporting awareness-raising initiatives, targeting government bodies and community structures for the prevention of GBV; h. Strengthening the capacity of governmental institutions, NGOs and humanitarian staff to prevent and respond to GBV by organizing trainings, providing technical support and tapping into existing training/capacity development opportunities; i. Active liaising with relevant cluster working groups (health, mental health etc.) to ensure that GBV issues are integrated into all humanitarian response efforts.
j. Liaising with the national level GBV group which is co-lead by MoFSP and AFAD in Ankara.
k. Developing national and international advocacy strategy on the issues of GBV to put the issue on the agenda of the local, regional and int’l institutions and donors.

2. The work of the GBV Sub-Working Group will be guided by the following principles:

**Confidentiality** : ensuring that survivors, witnesses and information sources are protected.
No identifying information will be revealed in data resources, nor during coordination or other public meetings, when reference is made to (specific) GBV cases;

**Neutrality** : a non-partisan approach in providing services to survivors - not taking sides;

**Impartiality** : non-discrimination on the basis of nationality, race, religious belief,
political views, sexual orientation, social or other status;

**Safety and security** : all actors will prioritize the safety of the survivor, family, witnesses
and service providers at all times;

**Participatory approach** : ensuring, to the extent possible, consultation with all members
of the community (women, girls and boys and men) throughout the GBV programming cycle;

**Independence** : working without influence of States, government bodies, parties to a
conflict or other political entities;

**Respect** : actions and responses of all actors will be guided by respect for the choices,
wishes, rights and the dignity of the survivor.

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Input:
**Further Contact**

Tayba Sharif, UNHCR, Protection Officer (Gaziantep) Meltem Ağduk, UNFPA Gender Programme Coordinator and GBV Humanitarian Consultant (Ankara)

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Input:
**FOR OFFICIAL USE ONLY**

Report No: PCBASIC0178487 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT

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Input: CURRENCY EQUIVALENTS (Exchange Rate Effective February 29, 2020) Currency Unit = Turkish Lira 5. 96 TL = US$1 US$0.17 = TL 1 6.62 TL = EURO 1 EURO 0.15 TL 1 Euro 1.0 US$0.9096 FISCAL YEAR January 1 - December 31 Regional Vice President: Cyril E. Muller Country Director: Auguste Tano Kouame Regional Director: Steven N. Schonberger Practice Manager: David Michaud Task Team Leader(s): Sanyu Lutalo, Canan Yildiz

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Input:
**ABBREVIATIONS AND ACRONYMS**

AF Additional Financing AFAD Disaster and Emergency Management Authority (in Turkish) AFD French Development Agency (in French) ASA Advisory Services and Analytics ASKI Adana Su Ve Kanalizayson Idaresi (Adana General Directorate of Water and Wastewater Administration) BRSA Banking Regulation and Supervision Agency CAB Community Ablution Block CBA Cost-Benefit Analyses CPF Country Partnership Framework DGMM Directorate General of Migration Management DMA District Metering Area DSI Devlet Su Isleri EBRD European Bank for Reconstruction and Development EC European Commission ESF Environmental and Social Framework ESCP Environmental and Social Commitment Plan ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU European Union EUD European Union Delegation FCV Fragility, Conflict and Violence FIRR Financial Internal Rate of Return FM Financial Management FRIT Facility for Refugees in Turkey FY Fiscal Year GHG Green House Gas GoT Government of Turkey GRM Grievance Redress Mechanism GRS Grievance Redress Service GWSP Global Water Sector Partnership ILBANK Iller Bankasi Anonim Sirketi IBRD International Bank for Reconstruction and Development IDA International Development Association IDP Internally Displaced Person IFI International Financial Institution IPF Investment Project Financing IRR Internal Rate of Return ISKUR Turkish Employment Agency (in Turkish)

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Input: ISP Implementation Support Plan KASKI Kayiseri Su Ve Kanalizayson Idaresi (Kayiseri General Directorate of Water and Wastewater Administration) KFW Credit Institute for Reconstruction (in German) KOSGEB Small and Medium Industry Development Organization (in Turkish) M&E Monitoring and Evaluation MoFLSS Ministry of Family, Labour and Social Services (in Turkish) MoTF Ministry of Treasury and Finance MoNE Ministry of National Education (in Turkish) MSP Municipal Services Project MSP-AF Municipal Services Project – Additional Financing NEP New Economic Program NGO Non-Governmental Organization NWMP & AP National Waste Management Plan and Action Plan NRW Non-Revenue Water O&M Operational and Maintenance PCN Project Concept Note PDO Project Development Objective PIAP Performance Improvement Action Plan PID Project Identification Document PIU Project Implementation Unit PMU Project Management Unit POM Project Operational Manual PPSD Project Procurement Strategy Document SCADA Supervisory Control and Data Acquisition SCP Sustainable Cities Program SDG Sustainable Development Goal SKI Su Ve Kanalizayson Idaresi (General Directorate of Water and Wastewater Administration) SOE Statement of Expenditure SUTP Syrians under Temporary Protection SCD Systematic Country Diagnostic SWM Solid Waste Management TA Technical Assistance TURKSTAT Turkish Statistical Institute (in Turkish) UN United Nations UNHCR United Nations High Commissioner for Refugees UOTF Utility of the Future WASH Water Sanitation and Hygiene WBG World Bank Group WSS Water Supply and Sanitation WWTP Wastewater Treatment Plant

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Input:
**The World Bank**
Municipal Services Improvement Project(P169996) TABLE OF CONTENTS

**DATASHEET ........................................................................................................................... 1**

**I.** **STRATEGIC CONTEXT ...................................................................................................... 7**

A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 8 C. Relevance to Higher Level Objectives ............................................................................................. 12

**II.** **PROJECT DEVELOPMENT OBJECTIVE .............................................................................. 13**

**III.** **PROJECT DESCRIPTION .................................................................................................. 14**

A. Project Components ....................................................................................................................... 14 B. Results Chain................................................................................................................................... 19 C. Rationale for Bank Involvement and Role of Partners ................................................................... 20 D. Lessons Learned and Reflected in the Project Design .................................................................... 21

**IV.** **IMPLEMENTATION ARRANGEMENTS ............................................................................ 22**

A. Institutional and Implementation Arrangements .......................................................................... 22 B. Results Monitoring and Evaluation Arrangements......................................................................... 24 C. Sustainability ................................................................................................................................... 24

**V.** **PROJECT APPRAISAL SUMMARY ................................................................................... 25**

A. Technical, Economic and Financial Analysis ................................................................................... 25 B. Fiduciary .......................................................................................................................................... 27 C. Legal Operational Policies ............................................................................................................... 28

**VI.** **GRIEVANCE REDRESS SERVICES ..................................................................................... 34**

**VII.** **KEY RISKS ..................................................................................................................... 34**

**VIII.** **RESULTS FRAMEWORK AND MONITORING ................................................................... 37**

**ANNEX 1: Implementation Arrangements and Support Plan .......................................... 47**

**ANNEX 2: Detailed Project Description .......................................................................... 55**

**ANNEX 3: Economic and Financial Analysis .................................................................... 67**

**ANNEX 4: Procurement ................................................................................................. 77**

**ANNEX 5: Communications and Visibility Plan ............................................................... 88**

**ANNEX 6: Team List ...................................................................................................... 93**

**ANNEX 7: Project Map .................................................................................................. 94**

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Input:
**The World Bank**
Municipal Services Improvement Project(P169996) DATASHEET

**BASIC INFORMATION**
~~BASIC~~ ~~INFO~~ ~~TABLE~~ Country(ies) Project Name Turkey Municipal Services Improvement Project Project ID Financing Instrument Environmental and Social Risk Classification Investment Project P169996 Substantial Financing

**Financing & Implementation Modalities**

[ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC)

[ ] Series of Projects (SOP) [ ] Fragile State(s)

[ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s)

[✓] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country

[ ] Project-Based Guarantee [ ] Conflict

[ ] Deferred Drawdown [✓] Responding to Natural or Man-made Disaster

[ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 31-Mar-2020 31-Dec-2024 Bank/IFC Collaboration No

**Proposed Development Objective(s)**

The Project Development Objective (PDO) is to improve host and refugee communities access to safely managed water supply, sanitation and solid waste services in selected municipalities affected by the influx of Syrians Under Temporary Protection in Turkey.

Page 1 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996)

**Components**

**Component Name** **Cost (US$, millions)**

Environmental Infrastructure Investments 280.34 Technical Assistance for Project Management and Supervision, Capacity Building, 16.04 Communication and Citizen Engagement

**Organizations**

Borrower: ILLER BANKASI ANONIM SIRKETI (ILBANK) Implementing Agency: ILLER BANKASI ANONIM SIRKETI (ILBANK)

**PROJECT FINANCING DATA (US$, Millions)**

**SUMMARY-NewFin1**

**Total Project Cost** 296.76

**Total Financing** 148.80

**of which IBRD/IDA** 148.80

**Financing Gap** 147.96

**DETAILS-NewFinEnh1**

**World Bank Group Financing**

International Bank for Reconstruction and Development (IBRD) 148.80

**Expected Disbursements (in US$, Millions)**

**WB Fiscal Year** 2020 2021 2022 2023 2024 2025

**Annual** 0.00 8.30 15.00 25.00 40.00 60.50

**Cumulative** 0.00 8.30 23.30 48.30 88.30 148.80

**INSTITUTIONAL DATA**

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996)

**Practice Area (Lead)** **Contributing Practice Areas**

Water Urban, Resilience and Land

**Climate Change and Disaster Screening**

This operation has been screened for short and long-term climate change and disaster risks

**SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)**

**Risk Category** **Rating**

1. Political and Governance ⚫ Moderate

2. Macroeconomic ⚫ Substantial 3. Sector Strategies and Policies ⚫ Moderate 4. Technical Design of Project or Program ⚫ Moderate 5. Institutional Capacity for Implementation and Sustainability ⚫ Moderate 6. Fiduciary ⚫ Moderate 7. Environment and Social ⚫ Substantial 8. Stakeholders ⚫ Substantial 9. Other ⚫ Substantial 10. Overall ⚫ Substantial

**COMPLIANCE**

**Policy**
Does the project depart from the CPF in content or in other significant respects?

[ ] Yes [✓] No Does the project require any waivers of Bank policies?

[ ] Yes [✓] No Page 3 of 94

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**The World Bank**
Municipal Services Improvement Project (P169996)

**Environmental and Social Standards Relevance Given its Context at the Time of Appraisal**

**E & S Standards** **Relevance**

Assessment and Management of Environmental and Social Risks and Impacts Relevant Stakeholder Engagement and Information Disclosure Relevant Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and Management Relevant Community Health and Safety Relevant Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Biodiversity Conservation and Sustainable Management of Living Natural Resources Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Relevant Not Currently Relevant Cultural Heritage Relevant Financial Intermediaries Relevant

**NOTE** : For further information regarding the World Bank’s due diligence assessment of the Project’s potential
environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS).

**Legal Covenants**

Sections and Description Schedule 2, Section I.A.1(a). The Borrower shall maintain, until the completion of the Project, a Project Management Unit (“PMU”), established within its International Relations Department, and responsible for coordinating and supervising Project implementation, and for providing implementation support to Selected Municipalities and SKIs.

Sections and Description Schedule 2, Section I.A.1(b). The Borrower shall ensure that the PMU functions at all times in a manner and with staffing, budgetary resources, and authority necessary and appropriate for satisfactory Project implementation, and all of which shall be acceptable to the Bank (said staffing shall include (i) an environmental expert, (ii) a social expert, and (iii) a communications and stakeholder specialist).

Sections and Description Page 4 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) Schedule 2, Schedule 1, Section I.A.2. By no later than ninety (90) days after the Effective Date, the Borrower shall execute and deliver the Grant Agreement, and shall fulfill all conditions precedent to the effectiveness of, or to the right of the Borrower to make withdrawals under, said Grant Agreement.

Sections and Description Schedule 2, Section I.A.3. By no later than thirty (30) days after the signing of the first Sub-loan Agreement or Subgrant Agreement between the Borrower and a Selected Municipality or SKI, the Borrower shall: (a) ensure that the Selected Municipality or SKI establishes a Project implementing unit to carry out its respective Sub-project activities; and (b) cause the respective Selected Municipality or SKI to ensure that its Project implementing unit functions at all times during Project implementation in a manner and with staffing, budgetary resources, and authority necessary and appropriate for satisfactory Project implementation, and all of which shall be acceptable to the Bank.

Sections and Description Schedule 2, Section I.B.1. The Borrower shall maintain, throughout Project implementation, a Project Operational Manual (“POM”), in substance and manner acceptable to the Bank.

Sections and Description Schedule 2, Section I.B.2. The Borrower shall carry out the Project, and cause the Project to be carried out, in accordance with the arrangements, procedures and guidelines set forth in the POM.

Sections and Description Schedule 2, Section I.C.1. With respect to Part 1 of the Project, the Borrower shall make Sub-loans to Selected Municipalities and SKIs for the carrying out of Sub-projects, all in accordance with eligibility criteria and procedures, and on terms and conditions, acceptable to the Bank and as set forth in the Loan Agreement’s Schedule 2, Section I.C, the Loan Agreement’s Annex to Schedule 2, and the POM.

Sections and Description Schedule 2, Section I.C.2. Unless otherwise agreed to between the Bank and the Borrower, the eligibility of any said Sub-project investment proposed for financing under Part 1 of the Project shall be appraised and selected in accordance with standards, criteria and procedures acceptable to the Bank, which shall include determining that the proposed investment: (a) is aligned with the Project objective; (b) serves an area or areas that has/have a significant presence of SuTP; (c) is technically feasible; (d) is economically and financially viable; (e) is demand and needs driven; (f) demonstrates substantial readiness; (g) is environmentally and socially sustainable; and (h) is in compliance with, and can be designed and implemented in a manner in compliance with the Bank’s fiduciary requirements, Bank’s Environmental and Social Standards, the Loan Agreement’s Schedule 2, Section I.D, the Environmental and Social Commitment Plan, and the Environmental and Social Instruments, and all other relevant terms of the Loan Agreement, including the exclusion of Excluded Activities.

Sections and Description Schedule 2, Section I.C.3. The Borrower shall obtain the Bank’s approval of a proposed Sub-project and Sub-loan prior to the execution of a Sub-loan Agreement with the Selected Municipality or SKI concerned.

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) Sections and Description Schedule 2, Section I.C.4. The Borrower shall extend each Sub-loan under a Sub-loan Agreement with the respective Selected Municipality or SKI on terms and conditions approved by the Bank, including, without limitation, the terms and conditions set forth in the Loan Agreement’s Annex to Schedule 2 and the POM.

Sections and Description Schedule 2, Section D.1 and 2. The Borrower shall, and shall cause the Selected Municipalities and SKIs to, ensure that the Project is carried out in accordance with the Environmental and Social Standards, and implemented in accordance with the Environmental and Social Commitment Plan, in a manner acceptable to the Bank.

Sections and Description Schedule 2, Section E. The Borrower shall prepare and furnish to the Bank not later than April 15 of each year during the implementation of the Project, a proposed Annual Work Plan and Budget, afford the Bank a reasonable opportunity to exchange views on each such proposed Annual Work Plan and Budget, and ensure that the Project is implemented with due diligence during said following year, and not make or allow to be made any change to the approved Annual Work Plan and Budget without the Bank’s prior written approval.

**Conditions**

Type Description Effectiveness The Borrower has adopted a Project Operations Manual acceptable to the Bank (Article IV: Section 4.01 (a)).

Type Description Effectiveness The Borrower has properly staffed its Project Management Unit, with positions, terms of reference, and staff qualifications acceptable to the Bank (Article IV: Section 4.01 (b)). .

Type Description Effectiveness The Borrower has properly adjusted its existing grievance redress mechanism for the purposes of the Project, and operationalized said mechanism, all in manner and form acceptable to the Bank (Article IV: Section 4.01 (c)).

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996)

**I.** **STRATEGIC CONTEXT**

**A. Country Context**

1. **Turkey has high growth potential, but recent shocks have affected the sustainability of its economic gains since**

**the early 2000s.** After the Global Financial Crisis in 2008-2009, growth has been increasingly fueled by credit booms
and rapid accumulation of (mostly foreign exchange) private sector debt, together with short-term stimulus policy.
These led to declining productivity and growing macroeconomic imbalances in late 2017/early 2018. The situation was compounded by exogenous factors including multiple election cycles, regional conflict, and difficult international relations. The ensuing volatility in growth has affected the sustainability of Turkey’s economic gains.

2. **Economic vulnerabilities that had accumulated over the past 4 years came to a head in mid-2018.** Policy stimulus in the aftermath of the 2016 failed coup attempt led to economic overheating. Though growth accelerated to 7.4 percent in 2017, this came at a cost of double-digit inflation and a large current account deficit. A hardening of external economic conditions in mid-2018, together with tense international relations, led to a collapse in the Lira.
This profoundly affected the real and financial sectors. Corporations and banks suffered due to high foreign exchange debt, annual inflation peaked at 25 percent in October 2018, the economy went into recession in 2018, and unemployment spiked from 10 percent in January 2018 to 14 percent in June 2019 (World Bank 2019a, 2019b).

3. **The Turkish economy over the past 12 months has experienced major adjustments.** Current account imbalances have declined, banks have reduced their external exposure and portfolio flows have started to recover. These adjustments have lessened external vulnerabilities that had accumulated in the run up to the August 2018 currency shock. They have also contributed to a more stable Lira, notwithstanding bouts of currency volatility. There has also been steady disinflation over this period. These developments were supported by selected policy responses and accommodative global monetary conditions. Even so, foreign exchange reserves have gotten eroded over the past two years, exposing Turkey to external market pressure.

4. **Stagnating output, high costs of production, and high consumer prices have led to significant job losses and falling**

**real wages.** Unemployment among the youth is particularly high, jumping from 19 percent to 25 percent between
May 2018 and May 2019. Average real wages declined by 2.6 percent between 2017 and 2018, though have picked up more recently due to adjustments to the minimum wage. Poorer households have been most impacted because many low-income workers are employed in construction and agriculture – the sectors that saw the biggest decline in jobs. Moreover, the long-term impact of the real wage effects is greater for the poorest households since they have limited coping mechanisms.

5. **Turkey now faces a two-fold challenge:** in the near-term to extricate itself from a downturn while inflation is high (albeit declining), the external environment is uncertain, and firms are struggling with debt; and to put in place appropriate policy and institutional settings to support a shift to a sustainable-medium term growth model. The pace and sustainability of Turkey’s recovery will depend on reducing economic uncertainty backed by consistent policy mix. The economy has stabilized in the short-term. GDP is projected to rebound to 3 percent and 4 percent in 2020 and 2021, respectively. However, given the high degree of uncertainty in the global outlook, restoring confidence and reducing domestic risk premia with appropriate monetary stance and effective fiscal policy would be key for sustaining recovery. Rigorous progress in advancing structural reforms such as deepening financial markets and completing overdue labor market reforms will help to mitigate vulnerabilities, and support growth in the medium term.

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) 6. **Turkey is both a transit and reception country for migrants and refugees and, globally, the country hosts the**

**highest number of refugees.** **[1]** As a result of the crisis in its southern border with Syria, Turkey has been hosting an
increasing number of refugees and foreigners seeking international protection. In addition to hosting more than 3.6 million Syrians [2], who are under temporary protection, there are an estimated 400,000 asylum seekers and refugees from other nationalities. The country’s refugee response has been progressive and provides a model to other countries hosting refugees. However, the magnitude of the refugee and migrant influx continues to pose substantial development consequences for not only the displaced but also the communities into which they settle, contributing to the expansion and overcrowding of settlements, increased demands for urban services (including water supply, sanitation and solid waste services), additional pressure on infrastructure and the urban environment, conflicts over land, and increased competition for employment, housing, and social services. These stresses stretch the limited capacity of urban local governments, including municipalities and other service providers. Apart from the large cities such as Ankara, Istanbul and Izmir, many of the cities hosting a high concentration of Syrians are already located in the more vulnerable or disadvantaged provinces in Turkey, which exacerbates the development challenges.

7. **The Government of Turkey (GT) spent an estimated EUR 31 billion to meet the needs of refugees and hosting**

**communities from the beginning of the Syrian crisis to 2017.** **[3]** This includes the provision of free healthcare and
education possibilities, as well as allowing legal access to the labor market. The international community has also provided over EUR 4 billion since 2016, of which 95 percent is from the European Union (EU). [4] This includes the first tranche of the EU Facility for Refugees in Turkey (FRiT), which is an EUR 3 billion fund launched in 2016, designed to support the GoT hosting refugees, EUR 600 million EU support outside of the FRiT, and over EUR 400 million in bilateral support from EU countries. Other donors, UN agencies, international, national and local civil society organizations, as well as International Financial Institutions (IFIs), have also been playing an important role in Turkey’s refugee response, implementing a diverse range of programs and projects, accounting for over EUR 200 million.
These efforts have been geared primarily towards facilitating refugee access to existing public services while strengthening the capacity and responsiveness of state institutions at the national and local levels.

**B. Sectoral and Institutional Context**

8. **A legal framework was established to tackle challenges due to the influx of refugees in Turkey by issuing Law No.**

**6458 on Foreigners and International Protection in 2013 and Regulation No. 29153 on Temporary Protection of**
**Syrians in 2014.** While the primary responsibility for emergency response and coordinating humanitarian needs,
including management of the refugee camps, are fulfilled by the Disaster and Emergency Management Authority (AFAD), relevant ministries and local authorities, depending on their respective area of jurisdiction, assume responsibility to provide registered refugees with access to municipal services, education, healthcare, social services, and labor markets.

1 DGMM. 2019. This PAD uses the term refugee regardless of country of origin, although Syrians are under temporary protection status, and non-Syrians under international protection law.
_[http://www.goc.gov.tr/icerik6/temporary-protection_915_1024_4748_icerik](http://www.goc.gov.tr/icerik6/temporary-protection_915_1024_4748_icerik)_ 2 The terms “Syrians” and “refugees” are used in terms of sociological context and widespread daily use, and independent of the legal context in Turkey and Turkish Law. Turkey is a party to the 1951 Refugee Convention and 1967 Protocol. Turkey retains a geographic limitation to its ratification of the 1951 UN Convention on the Status of Refugees, which means that only those fleeing as a consequence of “events occurring in Europe” can be given refugee status. Syrian nationals, as well as stateless persons and refugees from Syria, who came to Turkey due to events in Syria after 28 April 2011 are provided with temporary protection.
3 European Commission (2018): Technical Assistance to the EU Facility for Refugees in Turkey – Updated EU Needs Assessment. October 2018.
Refer to: _[https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/updated_needs_assessment.pdf](https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/updated_needs_assessment.pdf)_ 4 Ibid.

Page 8 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) 9. **The scope of the current project is primarily limited to infrastructure and technical assistance relating to water**

**supply and sanitation (WSS) and solid waste management, even though municipal services in general** **cover a**
**broader range of sub-sectors** **[5]** **, based on priority action areas identified under the FRiT Municipal Infrastructure**
**Window in the 2018 Needs Assessment** **[6]** **prepared by the EU.** Four out of five priority action areas focused on
activities in the mentioned environmental infrastructure sub-sectors, while the fifth area focused on other municipal services which included transport, recreational area needs and migrant information and coordination centres, and community and culture centres. The Bank in its proposal to the EU to access the grant made a strategic choice to limit the focus areas to the WSS and solid waste sub-sectors to reduce the complexity of the project scope given the limited implementation period and available resources. Other development partners were subsequently invited by the GoT through ILBANK to address the other municipal services under the fifth priority area.

10. **The WSS sector has undergone several reforms over the years and roles are currently distributed among several**

**institutions.** The 1926 Water Law places the overall responsibility for water resources management at the state level.
This was confirmed in the Constitution of 1982 that provided that the state owns the right to explore and operate these natural resources but can transfer this right to private institutions for a defined period. Municipalities are responsible for WSS services in their respective areas. In 1984, starting with Istanbul, Turkey created 16 “metropolitan municipalities [7] ” (MM) by consolidating the municipalities in the main urban areas. The _Su Ve_ _Kanalizayson Idaresi_ (General Directorate of Water and Wastewater Administration) “SKI” is established in every metropolitan municipality to manage water supply and sanitation (WSS) services in accordance with the provisions of Law No 2560. SKIs are public entities or utilities that are affiliated with the metropolitan municipality and have an autonomous budget. A new law that came into effect on March 31, 2014, created 14 new metropolitan municipalities and SKIs and extended the service area of all metropolitan municipalities to cover the entire province. As a result, there are 30 SKIs responsible for providing WSS services to about 77 percent of the population. Other smaller municipalities provide WSS services through municipal departments. Special provincial administrations (SPAs) provide services in non-municipal areas. Responsibility for solid waste management rests with the respective municipalities.

11. **Goal 6 of the UN 2030 Agenda for Sustainable Development Goals (SDG 6) calls for** _**Ensuring Availability and**_ _**Sustainable Management of Water and Sanitation for All**_ **.** The goal addresses water supply, sanitation and hygiene (SDG Targets 6.1 and 6.2), treatment, recycling and reuse of wastewater (Target 6.3), increasing efficiency and ensuring sustainable withdrawals (Target 6.4), and protection of water-related ecosystems (Target 6.6) as part of an integrated approach to water resources management (Target 6.5). It also focuses attention on the links between development outcomes and means of implementation (6a and 6b). The Goal specifically seeks to achieve universal and equitable access to safe and affordable drinking water for all by 2030. While Turkey is considered to be advanced in terms of availability of water and sanitation services for most of its population in terms of overall access, sustainable management [8] of these services remains a challenge in many municipalities. Moreover, climate change is expected to compound this challenge. [9] 5 [Municipal services may cover a broad range of basic services that include, inter alia, sanitation (both wastewater/excreta management](https://en.wikipedia.org/wiki/Public_services)
[and solid waste), water supply, recreational facilities, street cleaning services, public libraries, schools, food inspection, fire services, law](https://en.wikipedia.org/wiki/Water)
[enforcement, ambulance and other health department services, and transportation..](https://en.wikipedia.org/wiki/Ambulance) 6 EU Facility for Refugees in Turkey - Updated Needs Assessment 2018: _[https://ec.europa.eu/neighbourhood-](https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/updated_needs_assessment.pdf)_ _[enlargement/sites/near/files/updated_needs_assessment.pdf](https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/updated_needs_assessment.pdf)_ 7 Metropolitan municipalities represent municipalities with population in excess of 750,000 people.
8 Sustainable WSS services are able to effectively deliver adequate consumer needs and are economically and financially viable, socially acceptable, technically and institutionally appropriate, and protect the environment and natural resources.
9 A 2016 Systematic Country Diagnostic (SCD) for Turkey, prepared by the World Bank, concluded that, given its large population and high Page 9 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) 12. **The sixth target under SDG 11 focuses on reducing the adverse per capita environmental impact of cities, including**

**by paying special attention to air quality and municipal and other waste management by 2030.** Progress towards
this target is to be monitored though measurement of the proportion of urban solid waste regularly collected and with adequate final discharge. Municipal solid waste is one of the major environmental problems in Turkey. While most of the population receives waste collection services, the majority of solid waste is not disposed in accordance with the relevant legal requirements and standards, and about 44 percent of the collected municipal waste is disposed to dump sites. Uncontrolled and illegal disposal methods like dumping and discharge into rivers and lakes also occur in several parts of the country.

13. **A World Bank Sector Note on Sustainable Urban Water Supply in Turkey** **[10]** **cited increasing water demand and**

**scarcity in Turkey, with the cumulative water demand for domestic, industrial, and irrigation uses expected to**
**exceed the water available before the end of the century.** Water demand is expected to increase from 43 billion m [3]
in 2015 to 54 billion m [3] by 2020 and to 62 billion m [3] by 2100, with models predicting that the decrease in water availability will be more severe in central provinces and provinces located on the southern and western shores of Turkey. There is therefore a need for increased efficiency in the use of water resources especially in these regions.

14. **While piped water coverage is relatively high in Turkey, more than 40 percent of water is distributed untreated,**

**which increases risks linked to poor water quality, including to public health.** According to Municipal Water
Statistics prepared by TURKSTAT in 2018, 99 percent of the population living in municipalities has access to piped water supply, however only 60 percent are served by a water treatment plant. The municipalities targeted in this project face significant water supply service challenges, including poor quality water due to inadequate water treatment facilities. Thus, based on the SDG definition of a safely managed drinking water service as one located on premises, available when needed and free from contamination, the municipalities are out of compliance with these service requirements, putting Turkey at risk of not fulfilling the SDG goal if not addressed. Service efficiency is also an issue, with utilities having high Non-Revenue Water (NRW), in some cases with over 50 percent losses, due to ageing or sub-optimally maintained transmission and distribution infrastructure. NRW in utilities averages about 36 percent country-wide.

15. **Similarly, while access to sewage networks is relatively high, a significant proportion of wastewater is discharged**

**untreated into the environment.** According to TURKSTAT Municipal Wastewater Statistics for 2016, 90 percent of
the population living in municipalities are served with a sewage network. However, only 70 percent of the population is served with a wastewater treatment plant. In individual municipalities coverage is lower, and the quality of sewerage infrastructure is inadequate, resulting in sewage leakages. These conditions not only impact the environment, but also lead to significant increases in operation and maintenance costs of the systems. With higher populations, impacts on the environment are increased. The current situation in the areas with no wastewater treatment puts the affected municipalities out of compliance with the SDGs, which define safely managed sanitation, as the use of an improved sanitation facility which is not shared with other households and where excreta is safely disposed in-situ or is transported and treated off-site. Access to safely managed [11] water supply and sanitation services at the neighborhood level in individual municipalities, especially in the lower income neighborhoods in urban level of water consumption, the country faces a significant water security threat from climate change—to manifest itself as potential droughts associated with the rising temperatures, changes in precipitation patterns, and reduced seasonal snow storage.
10 Republic of Turkey - Sustainable Urban Water Supply and Sanitation, World Bank, 2016.
11 According to the definition from the United Nations Sustainable Development Goals (SDGs), a safely managed drinking water service is defined as one located on premises, available when needed and free from contamination. Goal: By 2030 achieve universal and equitable access to safe and affordable drinking water for all.

Page 10 of 94

TURKSTAT Municipal Wastewater Statistics

Municipal Water
Statistics prepared by TURKSTAT

A dataset, survey, database, index, census, registry, or information system with a specific proper name that can be cited, queried, or downloaded as a data source

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) areas and peri-urban agricultural areas, which are inhabited by both Turkish citizens and SUTPs is a major issue.

16. **In addition to those challenges, the rapid influx of refugees has generated a significant additional burden on**

**already strained WSS services.** While the Government has embarked on an extensive rehabilitation and
development process nationwide to improve water quality nationally and to ensure that all rural and urban residential and industrial areas have access to safe drinking water, the sizeable population increase due to the refugee influx in many municipalities is further exacerbating pressure on existing infrastructure, requiring additional investments in water treatment and distribution systems. The provinces located in the South Eastern part of Turkey in particular, which remain the prime target of the Turkish Government’s development program, have seen the greatest negative impact in this regard. In individual municipalities, access to safely managed [12] water supply services at the neighborhood level is an issue, especially in the lower income neighborhoods and settlements which are inhabited by both Turkish citizens and refugees or SUTPs.

17. **There is evidence that existing solid waste disposal capacities in some affected municipalities are being strained**

**due to the refugee influx in affected areas.** This increase in waste generation has an impact on the lifetime of waste
collection vehicles and equipment, as well as disposal sites. While solid waste collection rates in Turkey are relatively high, a significant proportion of the waste is not disposed properly in landfills. According to the 2016 National Waste Management Plan and Action Plan (NWMP&AP) data, just over 60 percent of the municipal waste is sent to sanitary landfills, 28 percent is dumped into municipal dumpsites, and 11 percent was reported as recycled, composted or disposed of by other methods.

18. **Turkey’s rapid industrialization and urbanization growth during the last two decades has caused its environmental**

**footprint to increase rapidly, with total GHG emissions rising from 208 MtCO2e (in 1990) to 526 MtCO2e (in 2017)** **[13]** **.**
At the same time, climate change is further exacerbating already observed vulnerabilities and environmental risks, such as the intense flash floods in the Marmara region in September 2009, with 32 human losses and more than US$100 million of economic damage, as well as the recent floods in July-August 2019 in Northeastern Turkey. While there are no detailed climate change assessments that reflect conditions at each individual municipality level, Turkey has the highest risk of water safety in the arid and semi-arid regions including the Southeast, Central Anatolia, Aegean and Mediterranean. Most of the projections suggest a temperature increase of 3–4 °C on average across Turkey (from 2041 to 2070) [14] and uneven changes in the precipitation patterns, which are in turn expected to impact a number of sectors, including the availability of water resources across the country and the incidence of floods, associated with intense precipitation and coastal storms. Climate change impacts are expected to lead to more frequent and severe climate extreme events, including droughts (as highlighted in footnote 9), which could result in a disruption of critical municipal services and pose additional challenges to the existing urban infrastructure and well-being of the urban population. In addition, water pollution (caused by untreated industrial wastewater being discharged in rivers, among 12 According to the definition from the United Nations Sustainable Development Goals (SDGs), a safely managed drinking water service is defined as one located on premises, available when needed and free from contamination. Goal: By 2030 achieve universal and equitable access to safe and affordable drinking water for all.
13 Sources: _[http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=30627 and OECD Environmental Performance Reviews: Turkey 2019](http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=30627)_ _(_ [https://www.oecd-ilibrary.org/environment/oecd-environmental-performance-reviews-turkey-2019_9789264309753-en](https://www.oecd-ilibrary.org/environment/oecd-environmental-performance-reviews-turkey-2019_9789264309753-en) _)_ 14 Sources: _[OECD Environmental Performance Reviews: Turkey 2019 ); (https://www.oecd-ilibrary.org/environment/oecd-environmental-](https://www.oecd-ilibrary.org/environment/oecd-environmental-performance-reviews-turkey-2019_9789264309753-en)_ _[performance-reviews-turkey-2019_9789264309753-en](https://www.oecd-ilibrary.org/environment/oecd-environmental-performance-reviews-turkey-2019_9789264309753-en)_ ; Turkey’s National Climate Change Adaptation Strategy and Action Plan, T.R. Ministry of Environment and Urbanization, November 2011, Ankara (1st edition) and T.R. Ministry of Environment and Urbanization, August 2012, Ankara (2nd edition) ( _[http://www.dsi.gov.tr/docs/iklim-degisikligi/turkeys-national-climate-change-adaptation-strategy-](http://www.dsi.gov.tr/docs/iklim-degisikligi/turkeys-national-climate-change-adaptation-strategy-and-action-plan.pdf?sfvrsn=2)_ _[and-action-plan.pdf?sfvrsn=2](http://www.dsi.gov.tr/docs/iklim-degisikligi/turkeys-national-climate-change-adaptation-strategy-and-action-plan.pdf?sfvrsn=2)_ ) ; Page 11 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) other things) could significantly reduce in water quality. Against this background, conserving the quantity and quality of water resources is essential for the country’s long-term growth and sustainability.

19. **Turkey’s Climate Change Action Plan (2011–2023) identified actions aimed at increasing national preparedness and**

**capacity to avoid the adverse impacts of climate change and to adapt to its impacts.** In 2015, Turkey submitted its
Intended Nationally Determined Contribution to the United Nations Framework Convention on Climate Change, committing to reduce its greenhouse gas (GHG) emissions by up to 21 percent by 2030 compared to the business-asusual scenario, to be achieved through several new policies and measures, including those related to energy efficiency improvements.

20. **Currently, municipalities have limited financial capacity to design and implement climate- and resilience-related**

**investments, which is recognized as one of the key constraints for climate action in Turkey.** The Project provides
the opportunity to build capacity for screening, preparing, and implementing sub-projects which consider climate and disaster resilience, particularly in terms of addressing increasing risks of extreme weather events such as floods and droughts, and increasing difficulties in managing urban water resources during more intense and lengthy drought periods. It also provides the means to invest in mitigation and strengthening a range of such climate adaptation measures in municipalities, which are increasingly susceptible to climate change risks.

21. **Given the strain that the refugee influx has generated on water, wastewater and solid waste services, grant**

**financing has been extended in the amount of EUR 139,812,400** **[15]** **by the European Development Fund (EDF) under**
**the Municipal Infrastructure Window of the FRiT and the ILBANK has requested an IBRD loan in the amount of EUR**
**135,355,000 for a project to support municipal services improvements in several municipalities impacted by**
**refugees.** The targeted municipalities were selected from a list of ten affected areas identified through the 2018 EU
Needs Assessment, based on criteria such as the number of refugees and the magnitude and scope of municipal infrastructure needs. At the time of appraisal, sub-projects in five municipalities: Adana, Kahramanmaraş, Osmaniye, Kayseri and Konya, were identified to participate in the project based on eligibility criteria described under Section III below (Project Description). These municipalities had a total population of about 7.4 million people in 2018, including about 540,000 registered refugees. They already suffer from significant operational problems such as high water losses, inadequate water treatment facilities, ageing WSS infrastructure, inadequate solid waste management, and lack of wastewater treatment.

**C. Relevance to Higher Level Objectives**

22. **The World Bank Group views the development challenge of forced displacement as a corporate priority and a long-**

**term challenge that must be addressed to attain the Bank’s twin goals of reducing poverty and achieving shared**
**prosperity.** The project would leverage the important partnership with the European Union which is providing grant
support from the EU FRIT to be blended with proposed IBRD to support targeted municipalities in Turkey in addressing the increased pressure from Syrian refugees. Other development partners, such as the French 15 The project is expected to receive grant funding from the second tranche of the European Commission’s Facility for Refugees in Turkey (FRIT), in the amount of about Euro 134,219,904, excluding World Bank fees, remuneration and Bank executed operational costs. An application for the grant financing was submitted by the World Bank on March 15, 2019, and the EC through a letter dated May 27, 2019 authorized the Bank to formally negotiate the details of the project with the EU delegation in Turkey, to lead to a formal Contribution Agreement. Signing of the Administration Agreement (AA) between the World Bank and the EC for the Grant is subject to finalization of an update to the 2016 World Bank Group-EU Framework Agreement, which is under discussion by the parties. Accordingly, the grant financing is reflected as a financing gap in the Project documentation until the AA has been signed.

Page 12 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) Development Agency (AFD), United Nations Development Programme (UNDP) and European Investment Bank (EIB) will also engage in supporting implementation of municipal infrastructure projects in other municipalities not covered by the World Bank.

23. **The proposed project is consistent with the World Bank Country Partnership Framework (CPF) for Turkey for the**

**FY 2018-2021** **[16]** **period, discussed by the Board on August 29, 2017 (Report No. 11096-TR), and is aligned with the**
**objectives of Turkey’s 11th Development Plan (2019–2023).** The CPF is based on the findings of the Systematic
Country Diagnostic (finalized in 2016) that highlighted water availability and sustainable use as being key challenges for Turkey’s future development. The CPF has three focus areas: (1) Growth; (2) Inclusion; and (3) Sustainability.
Under Focus Area 2 (“Inclusion”) the WBG support in this area aims to consolidate Turkey’s success towards achieving the twin goals while also supporting efforts to reach those who are left behind. An important evolution of the WBG program in this CPF area has been and will continue to be the introduction of new investment operations financed by the EU’s FRiT which specifically sets the target to improve the situation of Syrians under Temporary Protection (SuTPs) (or refugees [17] ) in Turkey. Under Focus Area 3 (“Sustainability”) the Project will support the Strategic Objective 8 to improve sustainability and resilience of cities, specifically against the climate change-related risks of floods and droughts, and Strategic Objective 9, to increase sustainability of infrastructure assets and natural capital.

**II.** **PROJECT DEVELOPMENT OBJECTIVE**

**.Project Development Objective**

24. The project development objective is to improve host and refugee communities access to safely managed [18] water supply, sanitation [19] and solid waste services in selected municipalities affected by the influx of Syrians Under Temporary Protection in Turkey.

**B. PDO Level Indicators**

25. The key results (PDO level indicators) are presented below:

- Total number of people benefitting from safely managed drinking water services in the selected municipalities as
a result of the project (out of which female (%); host population (number); refugees (number))

- Total number of people benefitting from safely managed sanitation services in the selected municipalities as a
result of the project (out of which female (%); host population (number); refugees (number))

- Total number of people benefitting from safely managed solid waste services in the selected municipalities as a
result of the project (out of which female (%)); host population (number); refugees (number)) 15 Refer to Report No. 11096-TR: _[http://documents.worldbank.org/curated/en/585411504231252220/pdf/Turkey-CPF-08072017.pdf](http://documents.worldbank.org/curated/en/585411504231252220/pdf/Turkey-CPF-08072017.pdf)_ 17 Refugees in this context include both SUTPs and other refugees from other countries living among host communities includes Iraq, Afghanistan, Iran and others, who are under the status of international Protection.
18 Safely managed water supply focuses on ‘accessibility’, ‘availability’, and ‘quality’, and is defined as drinking water from an improved water source which is located on premises, available when needed and free of faecal and priority contamination. ‘Improved’ sources are those that are potentially capable of delivering safe water by nature of their design and construction, including piped water, boreholes or tube wells, protected dug wells, protected springs, and rainwater.
19 Safely managed sanitation refers to the use of improved facilities which are not shared with other households and where excreta are safely disposed in-situ or transported and treated off-site before disposal. Sanitation in this context mainly refers to wastewater and excreta management services.

Page 13 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996)

**C. Project Beneficiaries**

26. A total of about 3.3 million people, including refugees and host communities in the municipalities targeted under this project (out of which about 50 percent are women) are expected to benefit from the project. Of these, approximately 301,890 refugees (or 9 percent of the total beneficiaries) and 3,021,000 of the host population are expected to benefit directly from the municipal investments. Other beneficiaries will include the municipalities and municipal service providers (water and wastewater utilities) in the project areas, who will benefit from capacity building efforts financed through Component 2 to improve their capacity to more effectively manage the operation and maintenance of the environmental infrastructure, as well as commercial operations such as handling all their customers in an equitable and socially sensitive manner, in order to provide sustainable services that take into consideration climate change mitigation and adaptation aspects. ILBANK will also benefit from training in overall project management of operations involving refugee affected areas. The project is an opportunity for continued learning to the Government of Turkey, the World Bank, and other key stakeholders on an adequate business model for improving municipal service interventions in the context of situations of urgent need due to forced urban migration or displacement.

**III.** **PROJECT DESCRIPTION**

**A. Project Components**

27. The Project will finance environmental infrastructure investments and technical assistance (TA) through the provision of sub-loans and/or grants to support selected municipalities in dealing with the increased pressure on the defined municipal services, in particular water supply, sanitation and solid waste management, in a sustainable [20] and equitable manner, taking into account the needs of the entire population including the most vulnerable among host and SUTP populations. The activities will also aim to enhance the resilience of the infrastructure, as well as that of the targeted communities to climate change–exacerbated risks such as droughts, floods, and degraded water quality, and also raise awareness of the mitigation measures to be derived from improved efficiency of the water supply and sanitation service delivery and improved solid waste management. The Project design ensures that careful attention is paid to gender and citizen engagement corporate priorities in the World Bank, both of which are central to the development of an inclusive and responsive approach to development among the host and SUTP communities.

28. **Municipality and Sub-project eligibility.** The Project funds will be channeled through a public, national-level financial intermediary banking institution, ILBANK, which will in turn on-lend or on-grant it, as applicable to a number of municipalities or utilities (SKIs) based on a framework approach for sub-projects that meet eligibility criteria for participating in the project. Eligible municipalities were identified in the EU Needs Assessment. At appraisal, subprojects in five municipalities: Adana, Kahramanmaraş, Osmaniye, Kayseri and Konya, meeting the above criteria were identified to participate in the project. The eligibility criteria for sub-projects will be defined in the Project Operational Manual (POM), and include, _inter alia_ : (a) a significant presence of SUTP in the host municipality as identified in the EU Needs Assessment; and (b) municipal investments aligned with the PDO that are: (i) technically feasible; (ii) economically and financially viable; (iii) demand and needs driven, and that demonstrate substantial readiness, including having approved feasibility studies, detailed designs and draft safeguards documentation in line with World Bank ESF requirements; (iv) environmentally sustainable and in compliance with, and can be designed and implemented in manner incompliance with the Bank’s fiduciary (including financial and procurement) 20 Sustainability in this case addresses technical, environmental, economic/financial, and social dimensions of the project.

Page 14 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) requirements, and the Bank’s Environmental and Social Standards, consistent with the Environmental and Social Commitment Plan for the project (ESCP), and the Environmental and Social Instruments; (v) that do not trigger World Bank Operational Policy (OP) 7.50 (Projects on International Waterways); and (iv) that involve no new dams or dams under construction. All sub-projects to be financed from the grant and loan are subject to approval by ILBANK and the World Bank and EUD, as applicable [21] . ILBANK follows the financial eligibility criteria in accordance with the existing _Law on Regulating Public Finance and Debt Management (Law No. 4749)_ which restricts borrowing by any institution if it has overdue payments to Treasury for its on-lending to each municipality. Municipalities/utilities would be required to provide a Municipal Resolution/Utility Board decision stating that project financing would be sought for the proposed subprojects. Where the sub-borrower is a utility/SKI, a guarantee from the metropolitan municipality is also required. In the solid waste management sector, the grant beneficiary/ loan sub-borrower will be the municipality in line with existing institutional roles, while the beneficiary / sub-borrower for the WSS sectors will either be the municipality or utility /SKI with a guarantee provided by the municipality. Proposed activities are summarized below and the indicative breakdown of activities by financing source is presented in Table 2.1 (Annex 2).

29. **The IBRD loan and EU FRIT grant will co-finance** **[22]** **the project as a single project, although each financier will finance**

**separate individually identifiable activities as indicatively detailed in Annex 2 (Table A 2.1).** An indicative list of
activities to be financed from the loan and the grant was provided by ILBANK at appraisal. Activities financed from both sources will be implemented seamlessly in parallel under a single Procurement Plan prepared by ILBANK and approved by the World Bank during appraisal, and a single Project Implementation Plan to be prepared by ILBANK no later than 30 days after loan effectiveness. Both Plans will be reviewed and updated annually as needed. The Procurement Plan will identify the source of funding for each activity with prior approval by the Bank, although the rules for implementation will be exactly the same for both sources of funds.

30. **Component 1. Environmental Infrastructure Investments (Euro 254.98 million (US$280.34 million equivalent), of**

**which EU Grant is Euro 132.33 million** **[23]** **(US$145.49 equivalent) and IBRD loan is Euro 122.65 (US$134.83**
**equivalent):** This component will finance environmental infrastructure investments through the provision of subloans and/or grants to selected municipalities for goods, works, non-consulting and consulting services required to
carry out construction and rehabilitation works for water supply, sanitation, and solid waste management infrastructure in those municipalities to achieve improvements in access, service quality and continuity of municipal services; as well as smaller scale critical facilities to address immediate municipal service needs of vulnerable SUTP and host communities at the neighborhood or settlement level, to be identified in a participatory manner by the beneficiaries. Individual infrastructure facilities will, where appropriate, consider adaptive designs that would allow for a scaling up or down of capacity in the event of unanticipated changes in the refugee population or climate change-related extreme weather events. An indicative program of proposed sub-projects with investments to be financed through this component was pre-identified in the selected municipalities at appraisal (see Table 1 in Section V, A) of this document). Envisaged investments in water supply, sanitation, and solid waste management are described below.

a) **Water Supply Investments (Estimated Cost Euro 145.93 million of which IBRD loan is Euro 104.65 million**

**and EU Grant is Euro 41.28 million).** This activity will finance water supply investments, including for the: (i)

21 EUD approval will be required for grant financed sub-projects 22 Please see footnote 15 which is applicable for all further references to the grant financing in this document.
23 An additional contingency amount for investments in the amount of about Euro 984,904 is allowed for in the grant amount, bringing the total grant amount to Euro 134,219,904. A front-end fee for the IBRD loan in the amount of US$372,040 is included in the project cost.

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) construction and/or rehabilitation of water treatment plants; (ii) construction or rehabilitation of water transmission and distribution networks; (iii) expansion of water reservoir capacities; (iv) Non-Revenue Water (NRW) reduction activities such as installation of SCADA systems and development of district metering areas (DMAs), leakage control measures; and (v) provision of priority people-facing public hygiene facilities or interventions at the individual settlement/neighborhood level to ensure that all people, including the most vulnerable, have access to safely managed water supply services; and (vi) other demand-driven water supply investments as approved by the Bank. All these activities will increase the supply of (treated) water and, combined with sanitation investments, will decrease the volume of untreated wastewater discharged into water bodies, thereby raising the targeted communities’ resilience to droughts and poor-quality water. The priority interventions at the household or neighborhood level under (v) above will be identified in a participatory manner with the beneficiary communities and the respective municipalities early on during implementation to respond to specific people-facing priorities in terms of spatial or facility targeting, and could include facilities such as provision of additional access points, laundry facilities, etc. Investments under this component are expected to contribute to improved access to safely managed water supply in the targeted areas by augmenting existing capacities, improving quality of services among host and refugee populations, and raising the targeted communities’ resilience to droughts and poor-quality water. Water supply and sanitation investments will be designed to address climate change adaptation and mitigation through measures aimed at increased energy efficiency, such as: installation of energy-efficient pumping systems; reduction of non-revenue water (NRW); and system monitoring and regulation, with automation through SCADA systems. All three of these activities are expected to result in energy efficiency gains.

b) **Sanitation investments (Estimated Cost Euro 91.07 million of which IBRD loan is Euro 18.00 million and EU**

**Grant Euro 73.07 million)** . This activity will finance sanitation investments in selected municipalities, including
for the: (i) construction of new wastewater treatment plants (WWTPs) or interventions to increase their capacity; (ii) construction of new or rehabilitation or extension of existing sewerage collection networks; or (iii) targeted priority sanitation/or related public hygiene facilities to address immediate needs such as toilets in the most vulnerable settlements among host and refugee communities, to be identified in consultation with the communities, municipalities and SKIs; and (iv) other demand-driven sanitation investments as approved by the Bank. Extension or construction of the wastewater collection network is expected to decrease the amount of uncontrolled discharges to receiving bodies and the construction of wastewater treatment plants (WWTPs) to improve the quality of discharges to receiving bodies. These activities will thus not only reduce the volume of contaminated floodwaters in case of flooding but also reduce the likelihood of wastewater infrastructure becoming overwhelmed or damaged during a flood, thereby increasing the targeted communities’ resilience to floods. Priority sanitation facilities at the neighborhood level will be identified in a participatory manner with the beneficiary communities and the municipalities early during implementation, and appropriate designs will be prepared in an adaptive manner to respond to specific people-facing priorities in terms of spatial or facility targeting, use of appropriate technologies such as semi-permanent structures that respond to land tenure constraints, etc. Investments under this component are expected to contribute to improved access to safely managed sanitation resulting in reduced environmental degradation and improved living conditions and environment in the targeted areas.

c) **Solid waste Investments (Estimated Cost Euro 17.00 million of which IBRD loan is Euro 0 and EU Grant is**

**Euro 17.00 million).** Identified investments under this component will include construction of a new solid
waste landfill in one municipality, closing of existing dumpsites, and provision of waste collection and transfer equipment and construction of two transfer stations in targeted municipalities, and other demand driven solid Page 16 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) waste management investments as approved by the Bank. At appraisal solid waste activities were mainly envisaged in Kahramanmaraş Municipality, however other municipalities may identify limited investments in solid waste management, such as waste containers and collection vehicles as prioritized.

31. **Component 2. Technical Assistance for Project Management and Supervision, Capacity Building, Communication**

**and Citizen Engagement (Euro 14.59 million (US$16.03 million equivalent), of which EU Grant is Euro 1.885 million**
**(US$2.07 million equivalent) and IBRD Loan is Euro 12.71 million (US$13.97 million equivalent).** This component
will finance goods and consultancy services for the following activities: a) **Project Management (Euro 2,605,000; Euro 780,000 from the EU Grant and Euro 1,825,000 from the IBRD**

**loan).** This activity will finance: **(i) Incremental operating costs** **(Euro 500,000 from the loan)**, including goods
and non- consulting services required to support ILBANK for day to day project coordination and supervision, and implementation of procurement, financial management, monitoring and evaluation, and safeguards functions and project audits; it will also finance workshops and other events such as steering committee meetings required to facilitate project management; **(ii) Consulting services for project management (Euro**
**780,000 from the grant)**, including consultant services required to support implementation of procurement
and financial management aspects, management of social and environmental safeguards and climate changerelated aspects, including dam safety requirements associated with the project, technical and contract management, monitoring and evaluation (M&E), and project reporting and communications, as agreed with the Bank; **(iii) Procurement of Video Conference System/s for ILBANK HQs and Regional Directorates (Euro**
**1,325,000 from the Loan)** .

b) **Consultancy services for design review and supervision of environmental** **infrastructure (Euro 10,250,000**

**financed from the IBRD loan).** This activity will finance consultancy services for design review and preparation
of bidding documents, taking into account climate change considerations, and supervision of construction and rehabilitation works for proposed environmental infrastructure investments under Component 1.

c) **Institutional Capacity Building activities targeting the participating municipalities, utilities and ILBANK (Euro**

**630,000 financed from the IBRD loan).** This activity will finance capacity building activities, including interalia, training, workshops and other learning events targeted at ILBANK, Municipalities and SKIs. Capacity
building activities will be aimed at, inter alia, improving performance efficiency, and increasing capacity within municipalities and SKIs/utilities to further modernize their operations to optimize efficiency and effectiveness in municipal service delivery while embracing principles such as resilience, financial and environmental sustainability, and inclusion. These activities will also seek to contribute to increased water security through more efficient delivery, and thus increased resilience to climate change. This activity will leverage World Bank tools and resources as well as synergies with other FRIT projects managed by the Bank to identify and prioritize capacity building needs in a participatory manner and identify and agree on selected actions to be implemented and monitored during the project’s lifetime. An Institutional Capacity Development Plan will be prepared for the project in consultation with relevant institutions at the start of the project, and an Action Plan, including specific capacity building activities will be developed and updated annually defining planned actions, to be confirmed on a no objection basis with the Bank. Agreed actions by the SKIs and municipalities to improve their performance will be defined in Performance Improvement Action Plans (PIAPs) comprising a set of feasible actions identified in a participatory manner by the relevant participating institutions at the start of the project. Relevant Bank activities and resources to be leveraged may include: a _Utility for the Future_ _(UOTF)_ initiative with support from the Global Water Security Partnership (GWSP) Multi-donor trust fund.

Page 17 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) d) **Citizen/Community engagement activities and trainings to facilitate effective two-way engagement among**

**stakeholders, including Turkish citizens and SUTPs, Municipalities and SKI’s to identify the needs and**
**priorities for enhancing service delivery to all people in the beneficiary communities (Euro 370,000 financed**
**from the EU Grant)** . Detailed activities will be planned and implemented in a participatory manner and will
seek to identify and respond within the context of the current project to grievances and concerns relating to planning, implementation, and delivery of municipal services; affordability and other pertinent issues. The Bank will take advantage of the outcome of the citizen engagement activities of ILBANK under the relevant FRIT funded activities of the Bank.

e) **Public Communication and Visibility activities (EURO 735,000 fully financed from the EU Grant).** This activity will finance Communications and Visibility activities for the project, including preparation of a detailed communication and visibility plan, information and outreach campaigns; brochures, promotional and audiovisual materials, and awareness-raising events. The objectives of project communications and visibility activities are to: (i) facilitate outreach and engagement of refugees and host communities in project activities; and (ii) share results and disseminate project lessons with key audiences for broader impact. Communications and visibility activities are also intended to communicate to project beneficiaries and stakeholders information about the EU’s financial contribution to support refugees and host communities in Turkey. [24] Activities will be detailed in a Communications and Visibility Plan that will be included in the POM.A detailed Communication and Visibility Plan will be developed at the start of implementation, in line with EU Communications and Visibility Manual for EU External Actions [25], as well as the World Bank’s external communications guidance.
Communications activities will also seek to target critical public education messaging to different stakeholder groups, including children and youths, and adults in relevant languages, specifically Turkish, English and Arabic.

32. **The project has significant potential to enhance the resilience of environmental infrastructure and services, and of**

**the targeted communities, to climate change-exacerbated risks, and to increase climate change mitigation from**
**improved efficiency of WSS service delivery and SWM.** Efficiency gains, including NRW reduction and energy savings
(which are both considered climate-smart activities through their potential to reduce emission), as well as the modernization/rehabilitation of WSS infrastructure under Component 1, are expected to result in large mitigation benefits, while the management of waste via a sanitary landfill rather than the current disposal sites that typically lack environmental controls is expected to have strong climate benefits. NRW reduction is expected to support utilities better withstand climate shocks to water supply, including water scarcity and drought, while reducing GHG emissions from pumping and treatment activities. Given the existing and future climate vulnerabilities, including the risk river and urban floods, and water scarcity, all project investments will account for climate aspects in their design.
The WSS activities, especially those addressing wastewater, will be designed in a flood-resilient manner to ensure environmentally sound and safe transport and treatment of wastewater. For the SWM activities, a regional solid waste management approach creates a more resilient solid waste management system since transport and waste disposal will be streamlined, following the operations and maintenance manual, and will follow safe, environmentally-sound practices to withstand rain and natural disasters. By transitioning from non-sanitary landfills to sanitary landfills, the waste system is expected to significantly improve how heavy storms and flooding affect the 24 The Delegation of the European Union to Turkey will be consulted on communications and visibility activities during implementation to ensure that the Communications and Visibility Plan is implemented in accordance with the Communications and Visibility Manual for EU External Actions as well as EU FRiT Visibility Guidelines.

25 https://ec.europa.eu/europeaid/work/visibility/_en Page 18 of 94

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Input:
**The World Bank**
Municipal Services Improvement Project (P169996) surrounding environment. The leachate collection and treatment systems in the sanitary landfills will be designed to prevent contamination of surrounding areas during periods of heavy rain.

33. **GHG Emissions:** The total net emissions of the project based on defined investments at appraisal were estimated at -1,139,559 tCO2-eq over the 30-year economic lifetime of the project. The average annual net emissions are 37,983 tCO2-eq. The total lifetime gross emissions are 671,988 tCO2-eq. The net emissions for the water supply investments in Osmaniye under subcomponent 1a are -990,458 tCO2-eq due to a reduction in tanker use as beneficiaries are switched to a piped potable water supply system. The wastewater collection and treatment investments in Osmaniye under subcomponent 1b are expected to see net emissions of -95,643 tCO2-eq due to a net reduction in methane and nitrous oxide emissions from introducing wastewater treatment. The wastewater system improvements in Kayseri under subcomponent 1b are expected to see net emission reductions of -53,458 tCO2-eq due to improved treatment standards leading to a net reduction in methane missions, greater energy efficiency for treatment, and a partial switch to gravity-based systems for collection. The solid waste investments under subcomponent 1c are estimated to have net emissions of -63,962 tCO2-eq leading to to a reduction in net emissions with a shift from unmanaged to managed landfills.

**B. Results Chain**

34. The results chain is presented in Figure 1. _Theory of Change_ below. Although the Theory of change diagram indicates the linkage with envisaged impacts, the project impacts will not be assessed under the project.

**Figure 1. Theory of Change** **[26]**

26 As highlighted through the patterned background, the ‘Impact level’ outcomes will not be measured as part of the project.

Page 19 of 94

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A data source described by its characteristics or producer rather than a proper name, containing a data noun and at least one identifying descriptor

A general reference to data, information, or statistics that contains a data noun but lacks enough specificity to identify the exact source