Fintech PR

AIIB, Türkiye Sign EUR150 Million Loan Agreement as Additional Funding for Istanbul Seismic Mitigation and Emergency Preparedness

Published

1 year ago

September 29, 2023

SHARM EL SHEIKH, Egypt, Sept. 29, 2023 /PRNewswire/ — The Asian Infrastructure Investment Bank (AIIB) has approved a loan of EUR150 million for the Istanbul Seismic Risk Mitigation and Emergency Preparedness Additional Financing (ISMEP-AF) project.

To formalize the agreement, a virtual signing ceremony was conducted between AIIB and the Republic of Türkiye on Sept. 27, 2023. AIIB was represented by Konstantin Limitovskiy, Vice President for Investment Operations in Region 2 (Pakistan, Afghanistan, Central Asia, East Asia, West Asia, Europe, Africa and Latin America), while the Republic of Türkiye was represented by the Ministry of Treasury and Finance Director General of Foreign Economic Relations, Kerem Dönmez.

“AIIB is consistently demonstrating our responsiveness to support our Members at critical junctures. The ISMEP-AF project will continue to build on the success of the ongoing AIIB’s financed ISMEP project to provide a safer learning environment for the students and teachers, as well as parents. It is yet another demonstration of the close partnership the Bank has developed with Türkiye, and testimony to the efficiency with which the Bank is able to respond to emerging client needs,” said Limitovskiy.

“The Republic of Türkiye is pleased to partner with AIIB to address the challenges posed by the increasing frequency and intensity of natural hazards. This project will enhance building resilience and help lessen the vulnerability of school buildings within the Project area. We appreciate close collaboration with AIIB for Türkiye’s development agenda,” said Dönmez.

The ISMEP-AF Project is built upon the successful AIIB-financed ISMEP project which has been implemented since late 2020. Under the ongoing ISMEP project, more than 98 public buildings, mostly schools, have been retrofitted or reconstructed to the current seismic resilient standard benefiting more than 50,000 students, teachers, parents, emergency response personnel, and medical staff. The ISMEP-AF project will support the retrofitting and reconstruction on the remaining school buildings that were built before 1999 which are not in compliance with the current seismic resilient standard. The massive 2023 earthquakes highlighted seismic and climate risks and prompted the acceleration of the building improvements.

The ISMEP and ISMEP-AF projects are not only strengthening the seismic resilience of the critical public facilities, but are also contributing to climate change mitigation and adaptation finance by improving building energy and resource efficiency and integrating adaptation design to enhance water conservancy and drainage system, respectively. Furthermore, the ISMEP projects will continue to create more space and a better environment conducive to learning that will result in lowered absentee rates and improved learning outcomes.

In addition to being aligned with Türkiye’s updated Nationally Determined Contributions, ISMEP-AF is aligned with the Paris Agreement’s climate goals on mitigation (BB1) and adaptation (BB2), consistent with AIIB’s commitment to fully align its operations with the Paris Agreement by July 1, 2023.

To date, AIIB’s total volume of investments in the Republic of Türkiye amounts to close to USD 3.9 billion, across 19 infrastructure projects, most of which are in the clean energy and transport sectors. Through AIIB’s Crisis Recovery Facility, the Bank also provided assistance to help the Government of Türkiye manage its COVID-19 response. AIIB is closely working with Türkiye to further deepen its engagement to support Türkiye’s development agenda.

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 109 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.