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PROGRAM INFORMATION DOCUMENT (PID) 
CONCEPT STAGE 
Report No.:  AB2829 
Operation Name 
PPDPL 2 
Region 
EUROPE AND CENTRAL ASIA 
Sector 
General public administration sector (60%);General energy sector 
(20%);General agriculture, fishing and forestry sector (20%) 
Project ID 
P088837 
Borrower(s) 
GOVERNMENT OF TURKEY 
Implementing Agency 
 
Undersecretariat of Treasury 
Turkey 
Tel: (90 312) 213 0297 
Fax: (90 312) 212 8550 
hazine@hazine.gov.tr 
Date PID Prepared 
January 24, 2007 
Estimated Date of 
Appraisal Authorization 
April 26, 2007 
Estimated Date of Board 
Approval 
June 26, 2007 
1.  Key development issues and rationale for Bank involvement 
The Turkish economy has gone through significant structural changes initiated to address the challenges 
raised by the severe economic crisis of 2000 and 2001.  A strong fiscal adjustment with a targeted public 
sector primary budget surplus of 6.5 percent of GNP has been at the center of the economic program 
implemented since then.  The fiscal adjustment has been accompanied by ongoing implementation of a 
comprehensive long-term government program to modernize the institutions and procedures of public 
sector management.  The key challenges lying ahead include improving the quality of fiscal adjustment 
and further advancing public sector reform, most notably in social security, governance, decentralization 
and the justice system.  The authorities have adopted a program of sustained medium-term legal, 
institutional, and structural reforms to address these challenges. To support the authorities in key fronts 
of this agenda, the Bank’s Board approved the Public Sector Development Policy Program, designed to 
support policy actions within the overall government program in key areas. 
 
2. Proposed objective(s) 
The PPDPL series supports a broad medium-term government program of institutional and structural 
development with the ultimate objectives of sustained economic growth, strengthened governance and 
improved public service delivery and social protection. More specifically, the program supported by the 
PPDPL series aims at reducing fragmentation and achieving long term fiscal sustainability in the social 
security system, and at expanding health protection in the population through introduction of a fiscally 
sustainable Universal Health Insurance (UHI) scheme. The government's program targets improvements 
in budgetary planning and implementation through strategic allocation of resources based on medium 
term expenditure frameworks. It also includes public administration reform measures for enhancing 
accountability and efficiency in local governments, expanding capacity at regional level and improving 
public service delivery and governance.  
 
3. Preliminary description 
The specific components of the program supported by PPDPL2 include: (a) continuation of a sound 
macroeconomic framework, with an aim to ensure sustainability of growth and mitigate risks arising 
from a complex and dynamic external environment; (b) further advancement and implementation of the 
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ongoing reform of Turkey’s social protection system, (c) continued upgrading of financial controls and 
public expenditure management, through steady implementation of the public financial management and 
control (PFMC) law that has underpinned the outstanding improvements in the public expenditure 
management system in Turkey; and (d) measures to improve the administration and governance of the 
public sector.   
 
The program elements to be supported by PPDPL 2 that aim at improvements in the quality of fiscal adjustment 
and in social protection include (a) measures to strengthen the fiscal sustainability of the social security system, 
(b) administrative reform measures intended to strengthen administrative capacity, and (c) efficiency-increasing 
and cost-saving measures in the health system to help contain pressures in health expenditures.  P
ublic sector 
reforms will include measures to improve public expenditure management and financial accountability 
including at the sub-national level. Reforms aimed at improving administration and governance of the 
public sector will include measures to expand capacity at local level, enhance regional development and 
upgrade public service delivery. 
 
4. Environment Aspects 
The project is not expected to have significant environmental impact. The Government of Turkey is 
working to make Turkey’s environmental standards consistent with those of the EU. 
 
5. Tentative financing 
Source: ($m.) 
Borrower 0 
INTERNATIONAL BANK FOR RECONSTRUCTION AND 
DEVELOPMENT 
400 
 Total 
400 
 
6. Contact point 
Contact: Zafer Mustafaoglu 
Title: Senior Economist 
Tel: 5242+8336 
Fax:  
Email: zmustafaoglu@worldbank.org 
Location: Ankara, Turkey (IBRD)