67774
                    Republic of Turkey: Country Partnership Strategy
                                          and
            Third Programmatic Environmental Sustainability and Energy Sector
                                Development Policy Loan

                                Meeting of the Executive Directors

                                           March 27, 2012

                                        Chair’s Summing Up


        Executive Directors discussed the joint IBRD/IFC/MIGA Country Partnership Strategy (CPS) for
the Republic of Turkey for the period FY 2012-2015 (R2012-0043[IFC/R2012-0048; MIGA/R2012-
0006]).

        Executive Directors commended the Turkish authorities for their efforts to reduce poverty, and
expand access to health care and basic education, and noted the country's remarkable recovery after the
economic and financial crisis of 2008-2009. Directors noted the country’s high current account deficit
but welcomed the measures taken to promote rebalancing of the economy. They also noted that recent
indicators pointed towards a soft landing for Turkey and encouraged the authorities to maintain a vigilant
stance in macroeconomic policy.

        Directors expressed broad support for the CPS and its three strategic objectives of enhanced
competitiveness and employment, improved equity and public services, and deepened sustainable
development. Directors welcomed the attention to gender issues and measures addressing social and
economic inequalities. They emphasized the importance of addressing regional disparities in Turkey, and
the importance of sustainability of the health and pension programs. They also recognized the country’s
growing global and regional role. Directors also welcomed the cross-cutting themes of the CPS – results,
knowledge, and capacity, and highlighted the innovative and timely support to South-South knowledge
exchange. The increasing emphasis on analytical and advisory services while maintaining significant
levels of financing was highlighted. In this regard, Executive Directors noted the importance of
strengthening synergies across lending operations, technical assistance, and analytical work.

        Directors also noted the significant role of IFC and MIGA in Turkey and the strong IBRD-IFC
collaboration in the areas of infrastructure, public-private partnerships, energy efficiency and financial
markets. Finally, Directors encouraged close coordination with other donors and with new actors in the
development arena and looked forward to the CPS Progress Report in 2014.



                                   SUMMARY OF DISCUSSION*

        Executive Directors approved a Third Programmatic Environmental Sustainability and Energy
Sector Development Policy Loan for the Republic of Turkey in the amount of euro 445.4 million
(US$600.0 million equivalent) on the payment terms and conditions set out in the President’s
Memorandum (R2012-0044).

        Directors agreed with the overall objective of the program and supported the three areas of
intervention outlined in the program – energy security, climate change mitigation, and environmental
sustainability. Directors encouraged continued attention to electricity and gas market development;
implementation of the country’s National Climate Change Strategy and Action Plan; and the effectiveness
and efficiency of the environmental management processes. Finally, the importance of close
collaboration with development partners was also highlighted.



 This summary is not an approved record.