The World Bank Implementation Status & Results Report Türkiye Green Industry Project (P179255) Türkiye Green Industry Project (P179255) EUROPE AND CENTRAL ASIA | Turkiye | IBRD/IDA | Investment Project Financing (IPF) | FY 2023 | Seq No: 3 | Archived on 24-Oct-2024 | ISR01816 Implementing Agencies: The Ministry of Industry and Technology (MoIT), The Scientific and Technological Research Council of Türkiye (TÜBİTAK), The Small and Medium Enterprises (SME) Development Organization of Türkiye (KOSGEB) 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 01-Jun-2023) The PDO is to support an efficient green transformation for industrial firms in Türkiye. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Support industrial SMEs to improve their energy and resource performance and reduce their carbon emissions:(Cost 250,000,000.00) Contingent Emergency Response Component (CERC):(Cost 0.00) Green innovation by industrial enterprises:(Cost 175,000,000.00) Project management and institutional development:(Cost 25,000,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Oct 24, 2024 Page 1 of 8 The World Bank Implementation Status & Results Report Türkiye Green Industry Project (P179255) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions The progress toward the achievement of the Project Development Objective (PDO) and the overall implementation progress are rated satisfactory. The project was approved on June 2, 2023 and signed on August 1, 2023. The project's implementing agencies (MoIT, KOSGEB, and TUBITAK) have fulfilled the project's effectiveness conditions. MoIT's loan agreement was declared effective on October 3, 2023; TUBITAK's loan agreement was declared effective on October 26, 2023; and KOSGEB's loan agreement was declared effective on November 3, 2023. MoIT organized a successful launch event for the Project on December 8, 2023. Since then, KOSGEB and TUBITAK opened calls for applications on December 8th, 2023, established selection committees to screen and evaluate applications, and started the selection process. The Project has received 2,414 applications from potential beneficiaries and provided support to 837 beneficiaries so far. All three implementing agencies (KOSGEB, TUBITAK and MoIT) are implementing their respective subcomponents in a satisfactory manner. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 02 - 15 Apr Proposed Rating 02 Jun 2023 2024 Political and Governance Moderate Moderate Moderate Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Overall Moderate Moderate Moderate Oct 24, 2024 Page 2 of 8 The World Bank Implementation Status & Results Report Türkiye Green Industry Project (P179255) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Enhance electricity efficiency of beneficiary firms Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jan/2023 0.00 31-Mar-2024 0.00 31-Mar-2024 10.00 Jun/2029 Comments on The indicator will measure amount of electricity needed per unit of production. The unit of Reduction in electricity achieving targets production will vary based on the nature of industrial product and it will be defined following a consumption per unit of firm-level diagnostic. The goal of this indicator is to reduce the usage of electricity per unit of production by beneficiary production by either: producing the same amount of units with less electricity consumption or firms (%) (Percentage) producing more units with the same electricity consumption. Formula is kWh divided by unit of production. This indicator will cover firms benefiting from KOSGEB's second subcomponent and TÜBİTAK's subcomponents 3.2 and 3.3. Enhance water efficiency of beneficiary firms Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jan/2023 0.00 31-Mar-2024 0.00 31-Mar-2024 10.00 Jun/2029 Comments on This indicator will measure the amount of water needed per unit of production. The unit of Reduction in water achieving targets production will vary based on the nature of industrial product and it will be defined following a consumption per unit of firm-level diagnostic. The goal of this indicator is to reduce the usage o water per unit of production by beneficiary production by either: producing the same amount of units with less water consumption or firms (%) (Percentage) producing more units with the same water consumption. Formula is cubical meter of water used divided by unit of production. This indicator will cover firms benefiting from KOSGEB's second subcomponent and TÜBİTAK's subcomponents 3.2 and 3.3. Page 3 of 8 The World Bank Implementation Status & Results Report Türkiye Green Industry Project (P179255) Enhance waste circulation efficiency of beneficiary firms Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jan/2023 0.00 31-Mar-2024 0.00 31-Mar-2024 10.00 Jun/2029 Reduction in uncirculated Comments on This indicator will measure the tons of waste recycled (by the firm or sold to another firm) waste by beneficiary firms (%) achieving targets over the total tons of waste generated by beneficiary firms. The aim is to reduce the amount (Percentage) of waste sent to landfills/dumps. This indicator will cover firms benefitingrom KOSGEB's second subcomponent and TÜBİTAK's subcomponents 3.2 and 3.3. Introduce innovative green efficiency solutions to the market Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jan/2023 0.00 31-Mar-2024 0.00 31-Mar-2024 226.00 Jun/2029 Number of innovative green Comments on The indicator will count innovative green efficiency solutions introduced by supported efficiency solutions achieving targets beneficiaries, which include products/services/business processes that led to water/energy introduced by beneficiary efficiency and increased waste recycling. It is expected that at least one innovative green firms (Number) efficiency solution will be developed in each supported RDI project. This indicator will mainly cover firms benefiting from TBİTAK's component. 6.2 Intermediate Results Indicators by Components Support industrial SMEs to improve their energy and resource performance and reduce their carbon emissions Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Amount of annual electricity 0.00 Jun/2023 0.00 31-Mar-2024 0.00 10-Oct-2024 350.00 Jun/2029 Page 4 of 8 The World Bank Implementation Status & Results Report Türkiye Green Industry Project (P179255) generated from solar systems Comments on Annual MWH of electricity generated from solar systems installed by beneficiary firms on-site by beneficiary firms achieving targets using project resources (MWh/year) Firms benefiting from private 0.00 Jan/2023 0.00 31-Mar-2024 792 10-Oct-2024 2,250.00 Jun/2029 sector initiatives (Number) Out of which are 0.00 Jun/2023 0.00 31-Mar-2024 0.00 10-Oct-2024 450.00 Jun/2029 women-owned or led Comments on Women-owned or led firms benefiting from private sector initiatives. Women-owned or led firms benefiting from achieving targets enterprises are defined as: formal enterprises with more than 50 percent ownership by private sector initiatives women OR with less than 50 percent ownership by women and majority women in senior (Number) management, e.g., CEO, CFO, CTO. Amount of private 0.00 Jun/2023 0.00 31-Mar-2024 0.00 10-Oct-2024 211,000,000.00 Jun/2029 investments mobilized by Comments on Co-investments of beneficiary firms to develop and/or introduce green solutions to improve beneficiary firms ($) achieving targets water/electricity efficiency and increase waste circulation (Amount(USD)) Number of SMEs reached by 0.00 Jun/2023 0.00 31-Mar-2024 0.00 10-Oct-2024 9,500.00 Jun/2029 green awareness campaigns Comments on Number of SMEs reached by green awareness campaigns (Number) achieving targets Reduction of electricity 0.00 Mar/2023 0.00 31-Mar-2024 0.00 10-Oct-2024 9.00 Jun/2029 consumption from fossil fuel Comments on The indicator measures the percentage of electricity provided by on-site installed solar panels, sources for beneficiary firms achieving targets which replaced electricity provided by the grid (fossil fuel sources). Target groups of this (%) (Percentage) indicator will be the beneficiaries of subcomponent 1.1. (KOSGEB). Green innovation by industrial enterprises Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Firms benefiting from private 0.00 Jan/2023 0.00 31-Mar-2024 45 10-Oct-2024 708.00 Jun/2029 sector initiatives (Number) Out of which are 0.00 Jun/2023 0.00 31-Mar-2024 0.00 10-Oct-2024 177.00 Jun/2029 women-owned or led Comments on Women-owned or led firms benefiting from private sector initiatives. Women-owned or led firms benefiting from Page 5 of 8 The World Bank Implementation Status & Results Report Türkiye Green Industry Project (P179255) private sector initiatives achieving targets enterprises are defined as: formal enterprises with more than 50 percent ownership by (Number) women OR with less than 50 percent ownership by women and majority women in senior management, e.g., CEO, CFO, CTO. Amount of private 0.00 Jun/2023 0.00 31-Mar-2024 0.00 10-Oct-2024 151,500,000.00 Jun/2029 investments mobilized by Comments on Co-investments of beneficiary firms to develop and/or introduce innovative green solutions to beneficiary firms ($) achieving targets improve water/electricity efficiency and increase waste circulation (Amount(USD)) Number of partnerships 0.00 Jun/2023 0.00 31-Mar-2024 0.00 10-Oct-2024 5.00 Jun/2029 formed as a result of the Comments on Number of Industrial Innovation Networks Mechanism (SAYEM) that benefited from the Industrial Innovation achieving targets project. SAYEMs are large scale partnership consortiums composed of 10-23 partners. These Networks Mechanism are formed to collectively invest in major breakthrough technologies, like green hydrogen and (SAYEM) (Number) ammonia, smart transport, synthetic biology, and/or others Project management and institutional development Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Implemented reforms 0.00 Jan/2023 0.00 31-Mar-2024 0.00 31-Mar-2024 5.00 Jun/2029 supporting private sector development (Number) Page 6 of 8 The World Bank Implementation Status & Results Report Türkiye Green Industry Project (P179255) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed Historical Disbursed IBRD-95400 Effective 250.00 250.00 0.00 47.34 202.66 18.94% 250.00 IBRD-95390 Effective 175.00 175.00 0.00 5.49 169.51 3.14% 175.00 IBRD-95380 Effective 25.00 25.00 0.00 0.41 24.59 1.63% 25.00 7.3 Key Dates (by loan) Oct 24, 2024 Page 7 of 8 The World Bank Implementation Status & Results Report Türkiye Green Industry Project (P179255) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IBRD-95380 Effective 02-Jun-2023 01-Aug-2023 04-Oct-2023 30-Jun-2029 30-Jun-2029 IBRD-95390 Effective 02-Jun-2023 01-Aug-2023 26-Oct-2023 30-Jun-2029 30-Jun-2029 IBRD-95400 Effective 02-Jun-2023 01-Aug-2023 06-Nov-2023 30-Jun-2029 30-Jun-2029 8. KEY DATES Key Events Planned Actual Approval 02-Jun-2023 02-Jun-2023 Effectiveness 04-Oct-2023 04-Oct-2023 Mid-Term Review No. 01 30-Jun-2026 Operation Closing/Cancellation 30-Jun-2029 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Oct 24, 2024 Page 8 of 8