AFD Grants Financing to Türkiye for the Reconstruction of Rural Houses in the Earthquake-hit Provinces

Ankara - The Ministry of Treasury and Finance of Turkish Republic and the French Development Agency (AFD) have signed a 200 MEUR financing agreement for the reconstruction of rural houses in the earthquake-hit provinces. This credit facility is matched with a 200 MEUR co-financing by the World Bank within the framework of the on-going "Türkiye Earthquake Recovery and Reconstruction Project".

The project, which will be implemented by the General Directorate of Construction Affairs in the Ministry of Environment, Urbanization, and Climate Change, will enable reconstruction of approximately 2,800 rural houses including the associated infrastructure and livelihood facilities (such as barns) in the earthquake-affected provinces.

Following the devastating earthquakes in 2023, France shared the pain of the Turkish people and immediately sent search and rescue teams to Turkey and established a field hospital in Adıyaman. Subsequently, AFD Group provided a total grant of 4 million EUR to support two NGOs operating in the earthquake-affected region by offering primary healthcare services, protection and mental health support, as well as psychosocial assistance.
AFD Group also provided a €155 million credit line to private and public banks in Türkiye, firstly to meet urgent liquidity needs arising from the restructuring of loans to individuals and SMEs following the earthquakes and secondly to promote the financing of investments that are resilient to natural hazards.

Moreover, with a grant of 550,000 EUR from the French Treasury's budget, a feasibility study is completed in collaboration with Malatya Municipality on the recycling and reuse of demolition waste. Following this, AFD's efforts towards the establishment of a debris recycling facility in Malatya continues.

During the signature ceremony for the reconstruction of rural houses, Mme. Isabelle DUMONT, French Ambassador to Türkiye marked that "Today, we are here to make an even greater contribution to these efforts. France's commitment to supporting Turkey's reconstruction process remains steadfast. We consider this financing, allocated for the reconstruction of village houses in earthquake-affected regions, as a reflection of our belief in the friendship between our two countries."
Through this project, sustainable and resilient housing will be built, enabling earthquake-affected families to return to their safe homes, accelerating the repopulation of rural areas, and supporting the regional economy.