The World Bank on Monday approved $600 million (TL 19.85 billion) in financing to support the revival of micro-enterprises that were destroyed or severely damaged by the devastating earthquakes that struck southeastern Türkiye in February last year.
The Türkiye Small Industrial Estates Reconstruction and Regional Economic Recovery Project aims to rejuvenate economic activity in four of the 11 provinces hardest hit by the tremors. The project will fund the creation of seven small industrial estates (SIEs) that will host 1,600 micro enterprises engaged in crafts, goods production and services, the bank said in a statement.
With the approved loan, the amount of financing provided by the World Bank for Türkiye in 2024 has reached close to $3.7 billion, Treasury and Finance Minister Mehmet Şimşek said.
The new SIEs will be designed to withstand future earthquakes, other natural disasters and the adverse effects of climate change. They will incorporate energy and water efficiency measures and generate solar energy to power the micro businesses, potentially reducing carbon emissions by an estimated 147,030 metric tons annually.
"The World Bank is committed to supporting Türkiye in its efforts to rebuild the earthquake-affected communities. We know well that the ongoing efforts from the enormous devastation will span several years and require considerable resources," said Humberto Lopez, World Bank Country Director for Türkiye.
"This project is a continuation of our work to restore livelihoods and economic recovery of the affected areas."
Approximately 15% of Türkiye’s micro, small and medium enterprises (MSMEs) are located in the earthquake-affected provinces, with many based in industrial estates that provide various facilities and services, such as affordable operational spaces, shared resources, infrastructure, utilities and access to credit.
"The project addresses the overwhelming need to restore the economic activities of MSMEs that suffered tremendous losses in terms of human and physical capital. It will also provide financial support for MSMEs to build their premises in a climate- and earthquake-resilient manner," said Stefka Slavova, lead economist and one of the project team leaders.
The project follows the Post-Earthquake MSME Recovery Project, which financed urgent operating expenses for MSMEs in the earthquake-affected areas.
Last year, the World Bank announced it would increase its exposure to Türkiye to $35 billion within three years by adding $18 billion worth of new operations to around $17 billion in programs already in place.
"In addition, the amount of financing approved by the World Bank so far for projects in earthquake-affected provinces has reached approximately $2 billion," said Şimşek.
"This financing indicates the World Bank's confidence in our country and our economic program," he emphasized.
Şimşek also stated that the government continues to cooperate with the World Bank on projects in the disaster area to revive the regional industry, which made a significant contribution to the economy before the earthquake, and to strengthen employment.