Bülbül: Grants in Turkey generally go unused

12punto-Gizem Yaralı

A decision regarding the "Grant Agreement signed between the Republic of Turkey and the International Bank for Reconstruction and Development concerning the Renewable Energy Project in Public Institutions and Municipalities," made in response to a financial aid request submitted on behalf of Turkey through the Ministry of Environment, Urbanization and Climate Change, has been published in the Official Gazette.

Accordingly, it was reported that under the "Grant Agreement signed between the Republic of Turkey and the International Bank for Reconstruction and Development concerning the Renewable Energy Project in Public Institutions and Municipalities," the International Bank for Reconstruction and Development has offered to provide a grant to Turkey in an amount not exceeding 1.5 million dollars.

Economist and finance expert Prof. Dr. Duran Bülbül's assessments on the subject are as follows:

The financial aid request made on behalf of the Republic of Turkey by the Ministry of Environment, Urbanization and Climate Change to the World Bank via the CSIDB has been met with a positive response. ILBANK is the manager of the provided funds, and the International Bank for Reconstruction and Development is the provider. The Republic of Turkey has previously created grant projects with the European Union and the World Bank for public-private partnership investments, for the 13 million irregular migrants occupying Turkey, for companies and municipalities, and for earthquakes. However, because the conditions of these grant projects were not met, most were returned and went unused. This is because it was easier to spend the public budget. For this reason, grants in Turkey are generally not used and are returned after a certain period, which also means that public institutions lack the qualified personnel to utilize these grants, or that the significant procedures and projects required to utilize them are not being carried out. It is easier for public institutions to use their own budgetary resources instead of utilizing and spending grants.

The international agreement signed between the World Bank and the Ministry of Environment, Urbanization and Climate Change on September 20, 2023, was published in the Official Gazette on Thursday, December 7, 2023. The 1.5 million dollar renewable energy project, to be coordinated by ILBANK, is 100% tax-exempt and 100% grant-funded. Metropolitan municipalities, provincial municipalities, and district municipalities will benefit from this project. The closing date for this grant project is June 30, 2027. Furthermore, provided that the necessary conditions are met, this grant project will enter into force and begin to be utilized 180 days after the date of its publication in the Official Gazette.