The Islamic Development Bank (IsDB) Group and Development and Investment Bank of Türkiye (TKYB) signed a $200 million (TL 5.79 billion) financing agreement to support the country’s earthquake-hit southeastern region on Tuesday.
"The financing will support Türkiye’s post-earthquake recovery efforts and revitalization of the agrifood sector in the most affected provinces," IsDB Group said on X, formerly Twitter.
"The deal aims to implement innovative agricultural technologies to rebuild the agricultural infrastructure, increase food activities and expand sustainable development studies," the TKYB said on X.
The signing ceremony of the agreement held at TKYB headquarters in Istanbul was attended by IsDB Group President and Chairperson Muhammad Al-Jasser, Deputy Minister of Treasury and Finance Osman Çelik, International Islamic Trade Finance Corporation (ITFC) CEO Hani Salem Sonbol and TKYB General Manager Ibrahim Öztop.
In his speech at the ceremony, Çelik said, "IsDB has been an important partner within the framework of our development agenda. We are very glad for our fruitful cooperation."
"‘The Post-Earthquake Recovery and Agrifood Support (PERAS) project’ will serve the region affected by the earthquake by supporting the economic recovery of agriculture and agrifood sectors," he added.
"Today marks a significant milestone in our enduring partnership with Türkiye. With this $200 million agreement, we are not just funding a project; we are investing in the resilient spirit of the Turkish people. This initiative is crucial in rebuilding and revitalizing the earthquake-affected areas, especially in the agriculture and agrifood sectors," al-Jasser said.
"Our solidarity with Türkiye in these challenging times is unwavering as we collectively turn these challenges into sustainable development and resilience opportunities," he added.
"I am also happy that the IsDB has brought our strategic partner OPEC Fund to join the IsDB Group in supporting this key project."
The IsDB has provided nearly $12.6 billion to Türkiye through more than 554 socioeconomic development projects. These projects encompass a wide range of sectors, with key footprints in transport, health, education, clean and renewable energy, energy security, food security, infrastructure, international trade, private sector development, SMEs, Islamic finance and insurance.
On his part, ITFC CEO Sonbol remarked: "We are deeply committed to supporting Türkiye’s recovery efforts from the devastating earthquakes. Our contribution of $100 million aims to finance the import and pre-export needs of Turkish companies in critical sectors, including food security, agriculture and earthquake-affected enterprises, reflecting ITFC’s ongoing dedication to fostering sustainable economic growth and food security."
"This joint financing resembles the resilient spirit of the Turkish people and a testament to the strength of international collaboration in times of need."
Öztop also commented on the significance of this collaboration: "This comprehensive financing package provided in collaboration with IsDB, ITFC and OPEC Fund is a milestone in our efforts to address the challenges posed by earthquakes and the ongoing need for food security. We are extremely proud to have signed for this cooperation that will contribute to the recovery and growth of our country."
The funds will be strategically utilized to support various initiatives within the PERAS project. These initiatives include rebuilding critical agricultural infrastructure, enhancing agrifood processing and distribution capabilities, and implementing innovative agricultural technologies to improve productivity and sustainability.
The investment is also aimed at developing robust market linkages to ensure the long-term viability and growth of Türkiye’s agricultural sector, thereby contributing to the overall economic recovery of the earthquake-affected regions.
A pair of powerful earthquakes hit the country’s southeastern region earlier this year, killing more than 50,000 people and causing widespread damage. Official estimates put the cost of the damage and reconstruction at around $100 billion.