WASHINGTON DC, June 5th, 2026-The World Bank Group approved a EUR 191.5 million (US$219.4 million) loan to Türkiye to modernize urban infrastructure and services in the fast-growing cities of Antalya and Konya, addressing a growing demand for public transport, clean water and sanitation, and efficient energy systems, while generating jobs along the way.
The Green and Future Cities Project will be implemented through İller Bankası A.Ş. (ILBANK) with the guarantee of the Republic of Türkiye. Türkiye's rapid urbanization has intensified demand for efficient and resilient municipal infrastructure. While fast-growing cities are central to the country's economy, many face constraints in accessing long-term financing for major investments to support people and growing economic activities.
"Türkiye's cities are key drivers of economic growth and job creation but also face increasing pressures from rapid urbanization and climate change," said J. Humberto Lopez, World Bank Country Director for Türkiye. "This project will help municipalities invest in modern, resilient infrastructure while strengthening their capacity to plan and finance sustainable urban development."
Planned investments include the expansion and modernization of public transport systems, such as tramlines and low-emission vehicles, as well as upgrades to water supply, wastewater treatment, and sanitation infrastructure. The project will also support measures to enhance energy efficiency and strengthen climate adaptation and resilience. These investments are expected to improve urban mobility, enhance environmental sustainability, and raise the quality of life for residents, while contributing to economic growth and job creation.
The project will also provide technical assistance to ILBANK and participating municipalities to strengthen their capacity in project preparation, financial management, and sustainable urban planning. This will include developing pipelines of bankable, climate-smart investments, strengthen municipal financial and institutional capacity, and enhance long-term resilience to climate and disaster risks.
"By combining financing with technical expertise, this project will help cities develop bankable, climate-smart investments and improve their access to long-term financing," said Ahmet Kindap, Task Team Leader for of the Project.
The project is also designed to help municipalities strengthen their creditworthiness and lay the groundwork for greater private sector participation over time.
Aligned with Türkiye's national development priorities, the project will support both mitigation and adaptation efforts. Investments are expected to reduce greenhouse gas emissions, enhance energy efficiency, and strengthen resilience to climate-related risks such as flooding, drought, and extreme heat. By improving infrastructure systems and service delivery, the project will help cities better withstand future shocks while promoting sustainable and inclusive urban growth.
This project preparation benefited from technical assistance and grants from the Global Facility for Disaster Reduction and Recovery (GFDRR)'s Japan-World Bank Program for Mainstreaming Disaster Risk Management in Developing Countries, supported by the Government of Japan.
