The Asian Infrastructure Investment Bank (AIIB) has signed a loan agreement equivalent of USD 500 million with the Republic of Türkiye to support a results-based financing program aimed at improving water efficiency and advancing climate adaptation.
The program will support the government’s efforts to upgrade irrigation infrastructure and strengthen flood risk management across priority river basins. It will finance the expansion of modern irrigation systems, installation of efficient pipelines and volumetric flow meters, as well as deployment of digital monitoring technologies to enable more precise and technology-enabled water use. It will also support climate-resilient flood control investments that will enhance flood protection in vulnerable areas.
“This investment supports Türkiye’s forward-looking approach in managing one of its most critical resources and its transition toward a more efficient, resilient, data-driven water system,” said Konstantin Limitovskiy, Chief Investment Officer, Public Sector (Region 2) & Project and Corporate Finance Clients (Global), AIIB. “By linking financing to verified results, the operation ensures that improvements in infrastructure translate into tangible gains. It also reinforces AIIB’s role as a key partner in advancing innovative solutions that deliver long-term impact.”
The program is expected to improve water management across nearly 45,000 hectares of land and benefit more than 540,000 people.
“In cooperation with AIIB, Türkiye has started to implement the results-based financing (RBF) approach to ensure continuity in water efficiency and flood management investments.” said Kerem Dönmez, Director General of Foreign Economic Relations, Ministry of Treasury and Finance. “This program is of strategic importance for Türkiye as it will help strengthen water security and climate resilience through improved irrigation and enhanced flood risk management, in line with Türkiye’s Medium-Term Program.”
Aligned with AIIB’s Water Sector Strategy and the Bank’s core thematic priorities of green and technology-enabled infrastructure, this investment builds on AIIB’s long-standing partnership with Türkiye. AIIB’s total approved financing amount in Türkiye to date has reached over USD7 billion. In 2025 alone, the Bank approved a record USD1.7 billion across multiple operations, underscoring the scale and momentum of engagement.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
