Türkiye inks $740M worth of financing agreements with Islamic Development Bank

ISTANBUL

The Islamic Development Bank (IsDB) and Türkiye signed two strategic deals worth around $740 million on Friday to support Türkiye's post-earthquake recovery through investments in disaster-resilient health systems and promoting green, resilient, and inclusive education.

"The signings took place in Ankara by Kerem Donmez, Director General of Foreign Economic Relations, Ministry of Treasury and Finance of Türkiye, and Walid Abdelwahab, Director of the IsDB Group Regional Hub in the country," IsDB said in a statement.

The statement noted that the bank has committed more than $14.7 billion to development financing projects and initiatives in Türkiye over the last 50 years, with a focus on 587 projects spanning a wide range of industries such as modern transportation, education, health, and renewable energy, among many other environmentally friendly projects.

"This series of financings marks another significant milestone in the longstanding development partnership between Türkiye and IsDB Group and aligns with the 2024–2026 Country Engagement Framework and the Government’s 12th Development Plan," it noted.

In the health sector, a €500 million (about $576 million) funding deal has also been reached by all parties for the reconstruction and modernization of two hospitals in Istanbul as part of the Istanbul Seismic Risk Reduction and Emergency Preparedness (ISMEP) program.

The Fatih Sultan Mehmet Training and Research Hospital will be expanded from 310 beds to 1,584. When fully operational, it will handle 800,000 emergency cases and more than 2.6 million outpatient visits annually.

"This project currently represents the largest single financing by IsDB to Türkiye and will significantly enhance the country’s capacity to deliver safe, high-quality, and earthquake-resilient healthcare services. The project is co-financed with the Council of Europe Development Bank," the bank added.

Donmez stated that these projects demonstrate the critical importance attached to improving resilient infrastructure by the Government of Türkiye in the health and education sectors, both in Istanbul and in the earthquake-affected region.

Abdelwahab reaffirmed the IsDB's unwavering commitment to helping Türkiye’s recovery and building long-term resilience. “We are proud to support transformative projects that address urgent needs and promote long-term development in Türkiye,” he said.