World Bank Backs Green Infrastructure Push in Turkish Cities

World Bank Country Director for Türkiye J. Humberto Lopez said the country's cities play a central role in driving economic growth and employment.

The World Bank Group has approved a €191.5 million (US$219.4 million) loan to support major urban infrastructure improvements in Türkiye, helping fast-growing cities meet rising demand for transport services, clean water, sanitation and energy-efficient systems.

The Green and Future Cities Project will be implemented through İller Bankası A.Ş. (ILBANK) with the guarantee of the Republic of Türkiye. The initiative will focus initially on the cities of Antalya and Konya, where rapid population growth has increased pressure on public services and municipal infrastructure. As urban areas continue to expand, many municipalities face difficulties securing long-term financing for large-scale development projects. The new funding is expected to help address these challenges while creating jobs and supporting economic activity.

World Bank Country Director for Türkiye J. Humberto Lopez said the country's cities play a central role in driving economic growth and employment. He noted that rapid urbanization and climate-related challenges are increasing the need for resilient infrastructure and stronger urban planning.

Modern Transport and Water Systems at the Centre of Investments

A significant share of the funding will be directed toward expanding and modernizing public transport networks. Planned investments include tramline improvements and the introduction of low-emission public transport vehicles aimed at reducing congestion and lowering environmental impacts. The project will also finance upgrades to water supply systems, wastewater treatment facilities and sanitation infrastructure. These improvements are expected to enhance service reliability, support public health and improve living conditions for residents.

Energy efficiency measures form another important component of the programme. Municipal infrastructure will be upgraded to reduce energy consumption and improve operational performance. Authorities expect these efforts to contribute to lower greenhouse gas emissions while helping cities manage growing resource demands more effectively.

Alongside physical infrastructure investments, the project seeks to strengthen climate resilience. Municipalities will receive support to better prepare for challenges such as flooding, drought and extreme heat, risks that are becoming increasingly significant in many urban areas.

Technical Support Aims to Strengthen Long-Term Urban Development

The initiative goes beyond infrastructure financing by providing technical assistance to ILBANK and participating municipalities. Support will focus on project preparation, financial management and sustainable urban planning practices. Local authorities will receive guidance in developing climate-smart investment pipelines that can attract future financing. The programme to help improve municipal financial management and strengthen institutional capacity, helping cities plan and implement complex projects more effectively.

According to Project Task Team Leader Ahmet Kindap, combining financial resources with technical expertise will help municipalities develop stronger investment proposals and improve access to long-term funding opportunities. Another objective is to enhance the creditworthiness of municipalities, creating conditions that could encourage greater private sector participation in urban development projects in the future.

The initiative is expected to reduce emissions while helping cities become more resilient to future environmental and economic shocks, by supporting cleaner transport systems, energy-efficient infrastructure and stronger climate adaptation measures. Officials believe the investments will not only improve essential services but also support sustainable and inclusive urban growth, ensuring that expanding cities can continue to meet the needs of residents and businesses in the years ahead.