The Asian Infrastructure Investment Bank (AIIB) has approved a $500m loan for two investment projects in Turkey.
AIIB said that a $300m sovereign-backed loan will be used for Istanbul Seismic Risk Mitigation and Emergency Preparedness Project, which is expected to improve Istanbul’s disaster resilience against earthquakes and enhance the city’s emergency preparedness.
Claimed to be AIIB’s first urban project in Turkey, the project includes the rehabilitation of priority public buildings such as schools, hospitals and other social facilities.
The project is expected to reduce potential future earthquake damage to these facilities and save lives.
The investment will also be utilised to supply emergency equipment such as power generators and water storage tanks to improve emergency preparedness. It will also support institutional capacity building, public awareness, training and project management.
AIIB vice president and chief investment officer DJ Pandian said: “The project is aligned with the aspirations of AIIB’s Sustainable Cities Strategy by making Istanbul’s critical public buildings greener and more resilient to seismic shocks.”
The remaining $200m loan will be utilised to improve the country’s renewable energy and energy efficiency infrastructure.
AIIB said that it will provide long-term financing to privately-owned companies in the country through Türkiye Kalkınma ve Yatırım Bankası (TKYB), the Development and Investment Bank of Turkey for the investments in renewable energy and energy efficiency infrastructure.
The investments will cover power generation projects based on wind, solar, geothermal and biomass, as well as energy efficiency projects which are expected to save energy while reducing carbon dioxide emissions.
Furthermore, the country aims to increase renewable energy’s share of total power generation to 50% by 2023 and reduce primary energy consumption by 14% in the same year.
Pandian said: “The on-lending facility will help increase Turkey’s installed capacity of renewables-based power generation and improve energy efficiency of existing installations.
“It aligns with AIIB’s Energy Strategy and commitment to advancing sustainable infrastructure.”