Turkey Organized Industrial Tender

Project ID P171645Region Europe and central asiaCommitment Amount Us 300.00 millionTotal Project Cost Us 300.00 millionThe proposed Project would support both infrastructure and the enabling environment for OIZ sustainability competitiveness and efficiency. Component 1 OIZ infrastructure investment This component would finance infrastructure investments in OIZs that meet pre-defined criteria for sustainability competitiveness and efficiency. The Ministry of Industry and Technology MoIT offers a concessional lending scheme to OIZs for their establishment and development. Historically the majority of OIZ investments under the lending scheme have gone to basic infrastructure such as roads and power. A smaller share has gone to wastewater treatment and administrative buildings. A 2017 reform expanded what the lending scheme can finance to include a broad range of infrastructure and productivity-enhancing and environmentally friendly investments. The component would utilize the existing scheme with some adjustments to a ensure that investments are demand-driven as the proposals come from OIZ management b leverage private sector financing since the OIZs are responsible for repayment and c build on current government systems. Component 1a Infrastructure to improve sustainability and competitiveness This subcomponent would support OIZ investments in more advanced infrastructure where there has historically been little focus. This includes green infrastructure and competitiveness infrastructure and related services. Given the positive externalities and less traditional more experimental in some cases nature of these investments more concessional terms might be required for the MoITs lending scheme. Green infrastructure. Examples include investments in energy supply from renewable sources e.g. rooftop solar photovoltaic biogas LED street lighting advanced wastewater treatment improved energy efficiency of administrative buildings and recyclingreusing waste materials for production inputs. It could also include investments to facilitate industrial symbiosis between two or more firms e.g. pipes to share heatsteam that is a byproduct of one industrial process and needed as input to another. Green infrastructure would have both environmental and competitiveness benefits by reducing electricity water and waste expenditures for OIZ management and resident firms. The infrastructure would also be expected to help zones obtain a Green OIZ certification see Component 2.