PRIME Regional Development PforR

dropped

Regional development remains a key priority for the government of Turkiye. A draft new National Strategy for Regional Development (NSRD) provides the framework for public investment programs. Regional public development investments depend largely on direct central government spending, administered by four Regional Development Administrations (RDAs) that cover the geographical scope of lagging regions. These four RDAs are affiliated to the Ministry of Industry and Technology (MOIT). Climate resilience is increasingly a key priority focus for regional development and related public investments.The government is pursuing a results-oriented program of public investment planning and budgetary allocations. This PforR (US$ 435 millon) will support the government program for Promoting Rural Initiatives and Improving Social, Economic, and Regional Development Infrastructure (PRIME), which is implemented by the RDAs and with the MOIT as the central line ministry. This PforR will reinforce ongoing and planned institutional reforms, enhancing the effectiveness of the government's regional development program (PRIME). The PforR is designed in coordination with the Strategy and Budget Office of the Presidency (SBO) that oversees all budgetary decisions on public investments. The PforR instrument capitalizes on the Government’s transition towards a performance-based budgeting system.The IPF component of US$15 million will assist with implementation of the Program through (i) operation support, (ii) targeted technical assistance and capacity building, (iii) the integration of IT solutions, (iv) change and project management. The IPF component is not expected to finance significant IT procurement.The Program's Theory of Change focuses on overcoming identified barriers to improve the effectiveness of public investments in regional development covering three key areas: (i) enhancing agriculture climate resilience and value-addition; (ii) supporting sustainable tourism in targeted areas; and (iii) strengthening the governance and management of RDAs’ public investments to improve results-orientation and climate resilience across sectors, including in agrifood and tourism. The proposed Program is fully aligned to the new Turkiye Country Partnership Framework (CPF) FY24-28. It will particularly contribute to CPF Objective 2 on spatial development and Objective 6 on resilient infrastructure investments at the local level. It also complements other Bank investments in support of small and medium enterprises, also within the lagging regions, to stimulate economic activity (P181068); socially inclusive programs supporting women and youth entrepreneurs (P180173); and initiatives targeting economic recovery in earthquake-effected areas of lagging regions (P502837).The World Bank can help ensure value for money and effectiveness as the government scales up its PRIME regional development program in the medium-term period ahead. The World Bank support to this PRIME government program of the RDAs will leverage the Bank’s comparative advantage to support the government on public investment management (PIM), governance and climate-smart regional convergence.