Turkey, Asian bank sign $5 billion deal for public sector projects

Turkey’s Finance Ministry announced on Monday that it had signed a memorandum of understanding with the Asian Infrastructure Investment Bank (AIIB) for $5 billion in financing for public sector projects over the next three years, the state-run Anadolu news agency reported.

The agreement was signed in the Saudi Arabian city of Al Ula at a meeting attended by Turkish Finance Minister Mehmet Şimşek and AIIB President Jin Liqun.

The deal is aimed at funding sustainability and green development initiatives, including projects in energy, transportation, health and water management.

The ministry also said an additional $5 billion in financing would be made available for private sector projects in the future.

Programımızla pekişen güven ortamı ve uluslararası finans kuruluşlarıyla güçlü işbirliğimiz sayesinde ülkemiz uluslararası kuruluşlar için kalkınma alanında önemli bir ortaktır.

Asya Altyapı Yatırım Bankası 2025-27 döneminde sürdürülebilir ve yeşil kalkınmaya yönelik kamu… https://t.co/vkMxhoeiyZ

— Mehmet Simsek (@memetsimsek) February 17, 2025

Finance Minister Şimşek, who also announced the deal on X, said that thanks to the trust engendered by the country’s economic program and strong cooperation with international financial institutions, Turkey has become an important partner for international organizations in development.

He added that by implementing the program, Turkey will enhance both public and private sector access to external financing under favorable conditions.

Turkey is the bank’s 10th largest shareholder

Turkey is the 10th largest shareholder in the AIIB, with a 2.5 percent share and a capital investment of $2.6 billion. The country ranks seventh among regional members of the 110-member international financial institution, headquartered in Beijing.

Since 2018, the AIIB has provided $5.5 billion in financing to Turkey, making it the second-largest beneficiary of the bank’s funding after India.