Türkiye Water Circularity and Efficiency Improvement Project

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Turkiye is a water-stressed country with spatial and temporal distribution of water resources varying significantly, exacerbated by the impact of climate change, urbanization, and growth in economic activities such as tourism and agriculture. Conservation of not only the quantity but also the quality of water resources, while managing water-related risks such as floods and droughts, and ensuring resilience to shocks, such as the impact of natural disasters and pandemics such as Covid-19, is essential for strengthening Turkiye’s water security to support long-term growth and sustainability. Demand for water resources in Turkiye from all sectors of the economy has steadily increased in recent decades, with agriculture accounting for 74 percent of freshwater withdrawals, 13 percent for domestic purposes and 13 percent for industry. Irrigation is necessary to ensure resilience of steady agricultural production and food security in Turkiye as only the eastern Black Sea region receives adequate precipitation throughout the year. Spatial and temporal variabilities in temperature and precipitation values hinder year-round production of field and horticultural crops under natural conditions. Irrigation opens possibilities to grow a whole range of crops, boosting wheat, barley, but also corn, sugar, cotton, citrus, grapes and various horticulture crops. Turkiye has extensive irrigation systems, however the efficiency of existing irrigation practices, although gradually being improved, remains a challenge. With over 6 million hectares of irrigated land (more than any other country in the sub-region), a highly sophisticated State Hydraulic Works (DSI), and an emphasis on extending service delivery, Turkey is one of the top irrigation and drainage countries in the world. Yet, it still has widespread low-performing and inefficient irrigation schemes, outdated and obsolete infrastructure, and a limited regulatory framework in support of real water savings. Turkey has set out ambitious goals in its 11th National Development Plan (NDP) and sector Actions Plans to expand and modernize irrigation, increase productivity, and reduce water losses. Apart from floods and droughts, the most important water related risks in Turkiye linked to climate change are significant threats to water quality. Water quality threats stem from a combination of mostly man-made activities such as inadequate wastewater treatment and subsequent effluent discharge, agricultural water pollution, and groundwater depletion leading to salinity and sea water intrusion. Approximately 16 percent of residential wastewater and 38 percent of industrial wastewater is not treated before discharge into water bodies (OECD, 2019). A third of Turkiye’s lakes and up to half of its rivers are currently considered either “contaminated” or “highly contaminated” by nutrients, particularly phosphorus and nitrogen. Addressing threats to water quality from the various sources of pollution calls for a holistic approach to water management, including not just investment in improved wastewater collection and treatment, but improving management of wastewater across its value chain with the application of circular economy principles. Ensuring the provision of basic services, such as wastewater services to the unserved population will also be important, not only for promoting public health and wellbeing and reducing water and environmental pollution in selected stressed basins, but also for supporting inclusive development in a post-Covid 19 context.Ensuring Turkiye’s long-term growth and progress towards greener, more resilient, and inclusive development to support a post-Covid-19 recovery will require effective conservation of both the quantity and quality of water resources, and mitigation of water-related risks to strengthen resilience. To address some of the most critical water security challenges identified above, the GoT has prioritized implementation of investments in irrigation modernization, and wastewater treatment with resource recovery and reuse for agriculture in selected water stressed basins through the national budget and has approached the World Bank to support the roll out of selected programs. The proposed project is consistent with the World Bank Country Partnership Framework (CPF) for Turkey for the FY 2018-2021 period and is aligned with the objectives of Turkey’s 11th Development Plan (2019–2023). The CPF has three focus areas: (1) Growth; (2) Inclusion; and (3) Sustainability. The project would particularly support Focus Areas 2 and 3. The project will also contribute to Turkiye’s national development goals outlined in its 11th National Development Plan which covers the period of 2019 - 2023. Under the Plan, it is aimed to increase the treated wastewater reuse rate from 1.2 % (in 2018) to 10 % (in 2023). With regards to the irrigation sector, the NDP states that two million hectares of land shall be opened to irrigation over the Plan period. Project Description The project would contribute to addressing existing threats to water security and strengthen resilience to climate change in Turkiye, by supporting the diversification and augmentation of water resources for productive uses, enhancing service delivery efficiency, in particular wastewater and irrigation and drainage services in water stressed and underserved areas, and strengthening management of water resources to better mitigate risks and promote the reuse of treated wastewater for irrigation. The project will specifically support interventions to: (i) reduce water pollution and environmental degradation, as well as Green House Gas (GHG) emissions from the discharge of untreated wastewaters into receiving water bodies through wastewater treatment, with reuse of treated wastewater in line with a circular economy approach, where economically and technically feasible; (ii) provide access to wastewater treatment services for currently underserved areas; (iii) support the continued rehabilitation and modernization of irrigation investments to reduce losses and enhance energy efficiency; (iv) piloting of novel Public Private Partnerships (PPPs) in irrigation management models to enhance efficiency and resilience; and (v) support for water conservation including implementation of regulatory and policy interventions to improve efficiency and demand management; and (vi) technical support to enhance institutional knowledge and innovation and sector capacity for improved water resource management to strengthen resilience. Infrastructure modernization will enhance resilience and climate change mitigation outcomes by prioritizing low energy-intensity and high-water delivery efficiency. The project will have the following components:Component A: Wastewater Collection, Treatment and Reuse. This component seeks to strengthen resilience to increasing climate change-induced water scarcity and to reduce environmental pollution in select water-stressed basins through wastewater treatment, reuse and resource recovery for agricultural irrigation and other beneficial purposes. Subcomponent A1: Construction and Upgrade of Wastewater Collectors and Treatment Plants with Reuse and Resource Recovery Potential. This subcomponent will provide loans to municipalities for consultancy services, goods, and works related to wastewater collection, treatment, reuse and resource recovery infrastructure investments, such as: (a) the extension or rehabilitation of priority raw wastewater collection and conveyance systems; (b) the expansion or upgrade of existing WWTPs with reuse potential; (c) rehabilitation and retrofitting of WWTPs in operation with biogas capture and energy generation facilities and/or sludge treatment processes, allowing for the recovery of these subproducts for reducing energy related operational costs or for other end uses such as agricultural or industrial use; and (d) the installation of treatment processes in existing facilities to allow for the reu