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World Bank Document FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PCBASIC0178487 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF EUR 135, 355,000 (US$148.80 MILLION EQUIVALENT) Public Disclosure Authorized WITH THE GUARANTEE OF THE REPUBLIC OF TURKEY TO THE ILLER BANKASI ANONIM SIRKETI FOR A MUNICIPAL SERVICES IMPROVEMENT PROJECT Public Disclosure Authorized MARCH 16, 2020 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Water Global Practice Europe And Central Asia Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective February 29, 2020) Currency Unit = Turkish Lir a 5. 96 TL = US$1 US$0.17 = TL 1 6.62 TL = EURO 1 EURO 0.15 TL 1 Euro 1.0 US$0.9096 FISCAL YEAR January 1 - December 31 Regional Vice President: Cyril E. Muller Country Director: Auguste Tano Kouame Regional Director: Steven N. Schonberger Practice Manager: David Michaud Task Team Leader(s): Sanyu Lutalo, Canan Yildiz ABBREVIATIONS AND ACRONYMS AF Additional Financing AFAD Disaster and Emergency Management Authority (in Turkish) AFD French Development Agency (in French) ASA Advisory Services and Analytics ASKI Adana Su Ve Kanalizayson Idaresi (Adana General Directorate of Water and Wastewater Administration) BRSA Banking Regulation and Supervision Agency CAB Community Ablution Block CBA Cost-Benefit Analyses CPF Country Partnership Framework DGMM Directorate General of Migration Management DMA District Metering Area DSI Devlet Su Isleri EBRD European Bank for Reconstruction and Development EC European Commission ESF Environmental and Social Framework ESCP Environmental and Social Commitment Plan ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU European Union EUD European Union Delegation FCV Fragility, Conflict and Violence FIRR Financial Internal Rate of Return FM Financial Management FRIT Facility for Refugees in Turkey FY Fiscal Year GHG Green House Gas GoT Government of Turkey GRM Grievance Redress Mechanism GRS Grievance Redress Service GWSP Global Water Sector Partnership ILBANK Iller Bankasi Anonim Sirketi IBRD International Bank for Reconstruction and Development IDA International Development Association IDP Internally Displaced Person IFI International Financial Institution IPF Investment Project Financing IRR Internal Rate of Return ISKUR Turkish Employment Agency (in Turkish) ISP Implementation Support Plan KASKI Kayiseri Su Ve Kanalizayson Idaresi (Kayiseri General Directorate of Water and Wastewater Administration) KFW Credit Institute for Reconstruction (in German) KOSGEB Small and Medium Industry Development Organization (in Turkish) M&E Monitoring and Evaluation MoFLSS Ministry of Family, Labour and Social Services (in Turkish) MoTF Ministry of Treasury and Finance MoNE Ministry of National Education (in Turkish) MSP Municipal Services Project MSP-AF Municipal Services Project – Additional Financing NEP New Economic Program NGO Non-Governmental Organization NWMP & AP National Waste Management Plan and Action Plan NRW Non-Revenue Water O&M Operational and Maintenance PCN Project Concept Note PDO Project Development Objective PIAP Performance Improvement Action Plan PID Project Identification Document PIU Project Implementation Unit PMU Project Management Unit POM Project Operational Manual PPSD Project Procurement Strategy Document SCADA Supervisory Control and Data Acquisition SCP Sustainable Cities Program SDG Sustainable Development Goal SKI Su Ve Kanalizayson Idaresi (General Directorate of Water and Wastewater Administration) SOE Statement of Expenditure SUTP Syrians under Temporary Protection SCD Systematic Country Diagnostic SWM Solid Waste Management TA Technical Assistance TURKSTAT Turkish Statistical Institute (in Turkish) UN United Nations UNHCR United Nations High Commissioner for Refugees UOTF Utility of the Future WASH Water Sanitation and Hygiene WBG World Bank Group WSS Water Supply and Sanitation WWTP Wastewater Treatment Plant The World Bank Municipal Services Improvement Project(P169996) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 8 C. Relevance to Higher Level Objectives ............................................................................................. 12 II. PROJECT DEVELOPMENT OBJECTIVE .............................................................................. 13 III. PROJECT DESCRIPTION .................................................................................................. 14 A. Project Components ....................................................................................................................... 14 B. Results Chain................................................................................................................................... 19 C. Rationale for Bank Involvement and Role of Partners ................................................................... 20 D. Lessons Learned and Reflected in the Project Design .................................................................... 21 IV. IMPLEMENTATION ARRANGEMENTS ............................................................................ 22 A. Institutional and Implementation Arrangements .......................................................................... 22 B. Results Monitoring and Evaluation Arrangements......................................................................... 24 C. Sustainability ................................................................................................................................... 24 V. PROJECT APPRAISAL SUMMARY ................................................................................... 25 A. Technical, Economic and Financial Analysis ................................................................................... 25 B. Fiduciary .......................................................................................................................................... 27 C. Legal Operational Policies ............................................................................................................... 28 VI. GRIEVANCE REDRESS SERVICES ..................................................................................... 34 VII. KEY RISKS ..................................................................................................................... 34 VIII. RESULTS FRAMEWORK AND MONITORING ................................................................... 37 ANNEX 1: Implementation Arrangements and Support Plan .......................................... 47 ANNEX 2: Detailed Project Description .......................................................................... 55 ANNEX 3: Economic and Financial Analysis .................................................................... 67 ANNEX 4: Procurement ................................................................................................. 77 ANNEX 5: Communications and Visibility Plan ............................................................... 88 ANNEX 6: Team List ...................................................................................................... 93 ANNEX 7: Project Map .................................................................................................. 94 The World Bank Municipal Services Improvement Project(P169996) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Turkey Municipal Services Improvement Project Project ID Financing Instrument Environmental and Social Risk Classification Investment Project P169996 Substantial Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [✓] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [✓] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 31-Mar-2020 31-Dec-2024 Bank/IFC Collaboration No Proposed Development Objective(s) The Project Development Objective (PDO) is to improve host and refugee communities access to safely managed water supply, sanitation and solid waste services in selected municipalities affected by the influx of Syrians Under Temporary Protection in Turkey. Page 1 of 94 The World Bank Municipal Services Improvement Project (P169996) Components Component Name Cost (US$, millions) Environmental Infrastructure Investments 280.34 Technical Assistance for Project Management and Supervision, Capacity Building, 16.04 Communication and Citizen Engagement Organizations Borrower: ILLER BANKASI ANONIM SIRKETI (ILBANK) Implementing Agency: ILLER BANKASI ANONIM SIRKETI (ILBANK) PROJECT FINANCING DATA (US$,
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