Subject:
Support and Incentives for Municipalities
Reading Time:
10 Min
Date:
Dec 8, 2025
Institutions Supporting Municipalities
Development Agencies
-DFD Support (Currently inactive support)
This is the support for research, planning, feasibility, and other activities that are of significant importance for initiating and implementing important strategic actions that will enhance the region's competitiveness level and accelerate its regional development.
-Technical Support (TS)
The aim is to provide support for the local actors' projects that are important for regional development but face difficulties in the preparation and implementation stages due to limited institutional capacity.
The scope of the program consists of projects that can contribute to the local and regional development of local governments, as well as other applicants, provided they do not establish a relation with any project proposal call published by the Agency; especially plans and programs of regional planning.
-Financial Support Programs Based on Project Proposal Invitations
Within the scope of developed support programs after the examination and studies conducted by the Agency, financial support can be provided in exchange for project proposals during certain periods. Project proposal invitations aim to invite potential applicants whose qualifications are clearly defined to submit project proposals according to previously set topics and conditions. In this framework, project proposals are also announced concerning non-profit institutions and organizations. Developments regarding project proposals can be followed at the address and link below.
Grants and Loans Provided by İLBANK A.Ş. (Local Development Bank)
Technical and financial support is provided for various grants to municipalities for infrastructure and construction services, and to establish renewable energy systems by making relevant applications by the İLBANK A.Ş., an organization affiliated with the Ministry of Environment and Urbanization.
What are the Activity Topics of the Bank?
For Local Governments;
➔ Providing Financing,
➔ Developing Projects,
➔ Offering Consultancy and Technical Services,
➔ Implementing Projects,
➔ Distributing shares allocated from the General Budget to local governments,
➔ Making and facilitating profit-oriented real estate investment projects and applications without entering into any credit and contingent obligation to provide funding to the Bank,
➔ Preparing and implementing special projects and construction works requested by the Ministry,
➔ Collaborating with domestic and international financing organizations,
➔ Providing resources from domestic and international financial institutions, and capital markets and various funds,
➔ Acquiring, selling, leasing, and encumbering any kind of movable and immovable assets, establishing rights and obligations related to real estate and other properties,
➔ Providing financing outside of its own resources, as long as it does not violate the Banking Law, for project development and consultancy services abroad,
➔ Acting as an intermediary for financing obtained for the implementation of projects,
➔ Engaging in all training and informational activities related to joint managements.
-Water and Sewerage Program (SUKAP)
The SUKAP works started in 2011; it is a project carried out to support the water, sewerage, and infrastructure projects of our municipalities. In this context, by the Presidential Decision, municipalities with a population of 25,000 and under are provided a grant aid equal to 50% of the project amount from the allocation made from the General Budget, while İLBANK A.Ş. will open a long-term loan for the remaining 50%. For municipalities with more than 25,000 inhabitants, credit allocation will be carried out without requiring adherence to the debt stock limit in the Law No. 5393 on Municipalities, according to the annex of the Presidential Decision. Additionally, the projects of municipalities whose projects have not been completed will be prioritized for project planning by İLBANK A.Ş.
-Funds Provided Under Regulations Concerning the Utilization of Allocations from the Annual Profit of İller Bankası for Infrastructure Projects and Construction Works in Villages and Municipalities
According to the 13th article of the Law No. 6107 on İller Bankası A.Ş., 51% of the Bank's annual net profit is used as grants for financing technical and social infrastructure services provided by the provincial special administrations, mainly for municipalities with populations under 200,000, and for financing the preparation and implementation of urban infrastructure projects such as maps, zoning plans, drinking water, wastewater, solid waste, and urban information systems, as well as for municipalities with populations under 25,000. The financing for projects related to maps, zoning plans, drinking water, wastewater, treatment facilities, marine discharge, solid waste regular storage, geothermal energy plants, city information systems, and other study and project works is supported with a 50% grant contribution from the Bank's profit allocations, while the remaining 50% is done through loans opened by İller Bankası. The usage areas include; Drinking Water, Sewerage, Treatment, Solid Waste, Marine Discharge, Service Building, Terminal, Business Center, Environmental Regulation, Road, Material, Vehicle - Equipment, Expropriation, and Real Estate.
-Technical and Financial Support for Renewable Energy by İller Bankası
Through the Renewable Energy Resources Department of İLBANK, all kinds of technical and financial support are provided for the establishment of renewable energy systems as indicated below.
➔ Obtaining electricity from solar energy (SES),
➔ Obtaining electricity from wind energy (RES),
➔ Obtaining electricity from hydroelectric energy (HES),
➔ Integrated systems for geothermal energy (hot water-steam-gas) provision (drilling, reinjection, electricity production, district heating, drying fruits and vegetables, etc.), ➔ Water and land-based heat transfer,
➔ Producing electricity and gas from biogas obtained from biomass (including landfill gas),
➔ Energy efficiency.
Supports Provided by the Ministry of Environment and Urbanization
-Assistance for Municipalities' Urban Infrastructure Needs
Assistance is provided by the Ministry of Environment and Urbanization from the allocations made to the Ministry budget, which is prepared by İller Bankası and included in the annual investment program of the Ministry of Development, to finance urban infrastructure needs such as maps, zoning plans, drinking water, wastewater, solid waste, etc., for municipalities lacking financial resources. The assistance to be provided from this allocation will be managed in accordance with the provisions of the "Regulation on the Utilization of Allocated Budget for Municipalities’ Urban Infrastructure Needs."
Eligible Allocation (Support) Topics are;
➔ Preparation of maps, drafting zoning plans,
➔ Preparation and construction of studies and projects related to every kind of infrastructure facilities such as drinking water networks, drinking water treatment, wastewater networks, wastewater treatment, marine discharge, solid waste disposal, etc. (md.4).
Eligible Applicants;
a) Projects of municipalities with populations of 100,000 or less based on the latest population census are taken into consideration.
b) Applications from municipalities whose preparation or final projects are deemed reasonable by the Bank will be evaluated for construction works.
c) Projects from municipalities that cannot afford the financing that should be provided by the municipalities for the total investment cost, after deducting debts from about 40% of the legal share to be distributed by the Bank are not considered.
d) Projects from municipalities that do not meet the funding requirements for their financial situation based on the financing amounts are not subjected to evaluation.
e) Only one of multiple infrastructure construction requests made at once will be evaluated.
f) Municipalities that benefited from national or international grant programs for similar projects within the last 3 years from the date of investment completion are not eligible to receive funding.
g) Requests with legal and technical obstacles concerning ownership, resource allocation, and similar matters during the application will not be evaluated.
h) (a), (c), and (e) clauses shall not apply to map drawings, zoning plans, and project preparation.
Support Rate
For municipalities engaged in the preparation of studies and projects related to the construction of mapping, zoning plans, drinking water networks, drinking water treatment, wastewater networks, wastewater treatment, marine discharge, and solid waste disposal facilities, 75% of the project value is supported.
For municipalities constructing urban infrastructure facilities, municipalities with a population of 20,000 and below are supported up to 75% of the investment cost, while municipalities with a population between 20,001-100,000 are supported up to 50%, within the principles foreseen in the regulation.
-Support Under Regulation on Monitoring and Collection of Environmental Revenues and Usage of Allocations Proposed for Collection
In order to prevent environmental pollution, improve the environment, and support investments related to the environment, the procedures and principles regarding expenditures to be made from the budget regarding the collection of environmental contribution fees, and other revenues to be recorded in the budget are regulated in the regulation on monitoring and collection of environmental revenues and the use of proposed allocations for collection. Under this regulation, expenditures and grants related to environment and environmental funds provided for financing are carried out in accordance with the expense procedures, applicable periods, and interest rates, as well as the collection processes for revenues to be recorded in the budget.
Aims of Use of Support;
In terms of financing to be supported by credit or grant for monitoring construction and feasibility studies, project and construction works related to wastewater infrastructure, wastewater treatment, deep seawater discharge, waste disposal, and solid waste recovery facilities,
➔ Expenses made for measurement and monitoring networks related to air, water, sea, and soil quality,
➔ Expenses incurred for studies and projects related to noise prevention,
➔ Expenses for preparing and amending emergency response plans, carrying out actions related to pollution in areas affected by emergency incidents, and restoring living habitats,
➔ Expenses for environmental impact assessment activities and urban planning work,
➔ Expenses for regional protection planning studies,
➔ Expenses for preserving biological diversity,
➔ Expenses for combating desertification and climate change,
➔ Expenses for strategic environmental assessments,
➔ Expenses for the protection of endangered plant and animal species and their habitats,
➔ Expenses for fulfilling obligations arising from international agreements,
➔ Expenses for educational and publication activities related to the environment, expenses for specialized commissions,
➔ Expenses for eliminating environmental pollution,
➔ Regarding the needs of public administrations under general management and the unions established and managed by them, expenditures for waste collection vehicles, vacuum trucks, water tankers, fumigation machines, street sweepers, and other vehicles and equipment deemed appropriate by the Ministry.
Applications are based on the principle that support and loan applications must be submitted twice a year, during January - February and June - July. If necessary, the Ministry may change the dates within the framework of the regulation. Proposals evaluated and approved by the Review Commission, concerning wastewater infrastructure, wastewater treatment, regular waste disposal, and recovery facilities belonging to public administrations under general management and unions they created, may receive support up to 45% of the contract value for projects, and in the case of model projects prepared by the Ministry, assistance can be provided up to 50% of the amount determined by the Ministry in the cost summary. For projects related to wastewater infrastructure, wastewater treatment, solid waste regular disposal, disposal, and recovery facilities, the support given by the Ministry will be distributed in three sections when the total amount in the cost summary or tender price exceeds TRL 5,000,000.
Supports Provided by the Ministry of Culture and Tourism
-Assistance for Projects of Local Governments, Associations and Foundations Under the Regulation on Aid
The Ministry of Culture and Tourism provides aid to projects prepared to develop and promote culture, art, and tourism under the "Regulation on Local Governments, Associations, and Foundations' Projects" in its budget. In summary, the aim is to provide support to the projects of local governments, as well as associations and foundations whose primary target is cultural, tourism, art, and promotional activities.
-Support for the Protection of Immovable Cultural Assets
Under the provisions of the Regulation on the Contribution of Immovable Cultural Assets Protection, dated 13.04.2005, Law No. 2863 on the Protection of Cultural and Natural Assets, support is provided for the restoration of cultural and natural assets. The implementation principles regarding the contribution fee of 10% of the property tax accrued for immovable cultural assets, which remain within the operational fields of municipalities and provincial special administrations, have been defined through this regulation.
Planning, project, application, and expropriation activities prepared by municipalities or provincial special administrations for the protection and evaluation of immovable cultural assets may be allowed to use up to 95% of the accumulated amount for cost determination, provided that the total amount is sufficient, taking into account the number of existing immovable cultural heritage assets, the current status, and contributions to the cultural values of the province. The periods for application are announced by the governors to the municipalities within the border of the province, starting from January. The governor has the authority to increase the number of application periods within the year up to four.
-Technical Assistance
The aim of the support is to provide financial assistance for requests related to environment and infrastructure applications that come from Local Governments (Municipalities, Provincial Special Administrations, Local Government Unions, and Investment Monitoring and Coordination Directorates) directly or through Provincial Culture and Tourism Directorates.
Topics for financial assistance include;
➔ Solid waste disposal facility
➔ Wastewater treatment facility
➔ Sewerage - collector line network
➔ Drinking water pipeline
➔ Water reservoir
➔ Transformer and lighting systems
➔ Winter sports facilities and infrastructure applications
➔ Toilets and septic systems
➔ Infrastructure applications such as parks, squares, and road arrangements
Support Provided by the Turkish Employment Agency (İŞKUR)
-Public Benefit Program (TYP)
The Turkish Employment Agency aims to help protect and expand employment, improve the vocational qualifications of the unemployed, reduce unemployment, and integrate groups requiring special policies into the labor market under the regulations of the Turkish Employment Agency Active Labor Services Regulation. This is achieved by creating a job or service for public benefit directly or through contractors during periods or regions with high unemployment, to ensure that unemployed individuals, especially those struggling with employment, do not deviate from work habits and discipline and to provide temporary income support. (The former name of the program was; Public Benefit Employment Program).
Services that can be provided;
➔ Environmental cleaning,
➔ Renewal of public infrastructure,
➔ Arranging environmental regulations in public schools under the Ministry of National Education,
➔ Performing maintenance, repair, and cleaning tasks in public schools under the Ministry of National Education,
➔ Restoration work, protection of historical and cultural heritage,
➔ Afforestation operations,
➔ Park arrangements,
➔ Rehabilitation projects in valleys and streams,
➔ Erosion prevention activities.
Supports Provided by TÜBİTAK
Support Program for Establishing Science Centers
Projects aimed at establishing science centers in metropolitan municipalities are supported. The science center building must be supplied by the metropolitan municipality. Funding from other institutions/organizations positively contributes to the project.
The establishment and popularization of science centers across the country is part of TÜBİTAK's mission to disseminate science. TÜBİTAK predicts that science centers will play a crucial role in spreading science culture in our community and aims to establish these centers in our country, increasing their numbers over the years.
In this context, it was decided in the 23rd meeting of the Science and Technology Supreme Council to establish science centers that will:
➔ Be established in all metropolitan areas from 2016,
➔ Additionally, studies will be conducted in all provinces by 2023, in cooperation with local governments. Accordingly, the goal is to support science center projects in metropolitan areas in the first phase and in other provinces in the second phase.
There is no time limit for applications. The process is initiated upon the written request of metropolitan municipalities. The maximum duration of the project is 6 years.
European Union Financial Assistance
✓ Pre-Accession EU Financial Assistance
The second period of the pre-accession assistance instrument covering the years 2014-2020 will continue the first period covering the years 2007-2013 and will be implemented within the framework of the objectives of enhancing our country's compliance with EU legislation and capacity for implementation as well as economic and social adaptation. What is the scope of the support provided to municipalities? The assistance provided to municipalities under IPA can be grouped under the following headings:
➔ Assistance to social inclusion projects,
➔ Assistance for environmental infrastructure-related projects,
➔ Assistance for projects aimed at strengthening regional competitiveness.
✓ Social Inclusion Projects
In this model, some or components of the projects developed by central public institutions within the framework of priority areas under IPA are provided as grants. The aim is to develop local solutions to problems identified at the central level through grant projects and thus maximize the impact of projects while enhancing local participation. It is necessary to follow grant announcements in order to apply for grant programs. Grant announcements are made by the Central Finance and Procurement Agency, the EU General Secretariat, the EU Delegation to Turkey, and the institutions that own the grant programs. Topics of the project may vary depending on the specific grant announcement.
Who Makes the Grant Announcement?
● Central Finance and Procurement Agency
● www.mfib.gov.tr
● Human Resources Program Authority
● www.ikg.gov.tr
● Ministry of European Affairs
● www.ab.gov.tr
● EU Delegation to Turkey
● www.avrupa.info.tr
● Grant Program Owner Institutions
✓ Support for Environmental Infrastructure Projects
Prepared within the framework of IPA, the Environmental Operational Program (ÇOP) aims to effectively utilize the funds allocated for the environmental sector in our country to help enhance its environmental performance in accordance with EU principles and policies. Within the priorities and measures specified under the ÇOP framework, the aim is to improve the quality of water supply, sewage and wastewater treatment, the development of integrated solid waste management, and strengthen administrative and technical capacity in our municipalities which are the final recipients of the program. The Environment and Urbanization Ministry has been designated as the Management Authority for the management of IPA fund administration in the environmental sector. The Management Authority is responsible for the appropriate management and implementation of the relevant component's Operational Program according to strong financial management principles. Grants from the EU can cover up to 75% of project costs. National contributions range from 30% to 45% provided by the Ministry and it is also possible to obtain loans from İller Bankası or international financial institutions for the remaining part.
✓ Erasmus for All Program
The European Commission announced that only the "Erasmus for All" program will be implemented in the areas of education, training, youth and sports for the period 2014-2020. The Erasmus for All program replaces the previous Lifelong Learning and Youth Programs with a simplified new structure that aims to increase effectiveness, ease of application for grants, and prevent redundancies and fragmentation by reducing the supported actions from 75 to 11.
The European Commission anticipates a 70% increase in budget compared to the allocations set aside for the 2007-2013 period, allocating €19 billion for the Erasmus for All Program for the 2014-2020 period.
The new program shares the same objectives as the previous programs but is grouped under three categories:
● Mobility of Individuals for Learning
● Cooperation for Innovation and Good Practices
● Support for Policy Reform
For detailed information: visit the website of the Turkish National Agency.
United Nations Supports
✓ United Nations Development Program (UNDP)
Since 1950, the United Nations Development Program has been working in Turkey in cooperation with various government institutions, civil society organizations, business community and other national and international institutions on issues related to democratic governance, development, and poverty reduction. More than 80 programs have been implemented throughout the country since 1986. In recent years, UNDP's Turkey priorities focus on four main human development areas: good governance, poverty alleviation, environment, and gender. Additionally, UNDP has played an active role in crisis and disaster response.
✓ Global Environment Facility – GEF
The Global Environment Facility (GEF) is a financial mechanism structured as a grant fund aimed at providing global environmental benefits, carried out by three implementing centers (UNDP, UNEP and World Bank). UNDP-GEF primarily funds development activities in environmental sectors. The focused issues may include: biodiversity, climate change, chemicals, international waters, land degradation, sustainable forest management, and ozone layer depletion. GEF categorizes qualifying projects with the following five types:
➔ Full-sized Projects;
➔ Medium-sized Projects;
➔ Enabling Activities;
➔ Targeted Research;
➔ Programmatic Approaches.
Note: GEF SGP Turkey (including the list below) "GENERAL" calling dates: November 4, 2022 and March 31, 2023
✓ Global Heritage Fund (GHF)
The GHF was established to protect cultural heritage under threat globally and assists developing countries through scientific approaches. GHF projects are selected through rigorous criteria. It is a non-profit organization that operates internationally, providing financial support for the preservation of cultural and historical heritage. Established in 2002, GHF has invested over $20 million to date.
How is the Application Process Conducted?
➔ GHF conducts a study together with its Senior Advisory Board and other experts to choose the activities to be worked on. To fall within the scope of a GHF project, the activity base must meet the following criteria.
➔ It must be listed as a UNESCO World Heritage Site or have international importance as an archaeological and cultural structure.
➔ The project must be located in a developing country or region.
➔ It must involve the formation of a strong team of local administrators and volunteers.
➔ It must have a strong conservation area and be in the construction phase.
➔ A strong preservation understanding must arise through community involvement.
✓ Cities Alliance – Catalytic Grants (CATF)
Aim of the support: Cities Alliance is a global partnership for successful approaches that aims at urban governance and poverty reduction.
Funds created by the Cities Alliance to serve the objectives of regular urbanization and poverty reduction prioritized city governments, local administrations, local government associations, or governments in the transfer of these funds. To access grants, the following target areas must be pursued:
➔ Development of cities and local governments for all citizens,
➔ Creating broad and long-term approaches toward urban development,
➔ Making necessary innovations for systemic changes,
➔ Strengthening local administrations.
What are the Eligible Project Topics?
➔ Urban development strategies
➔ Projects for the development of poor neighborhoods
➔ Sustainable income projects
➔ Project Catalytic grants objectives must be suitable.
➔ Grant requests must be in the range of $50,000 – $250,000.
➔ At least one member from Cities Alliance must support the project.
➔ There must not be any prohibitions by the government of the country related to the project.
Support Provided Under International Technical Cooperation
✓ Turkish-German Cooperation Program
The purpose of the support;
➔ Supporting the political goals of the Turkish Government and the planned reforms.
➔ Eliminating regional imbalances by focusing cooperation projects in poorer provinces.
➔ The project program will predominantly focus on the following issues: the environmentally sustainable development of municipalities (wastewater treatment facilities, solid waste storage facilities, and qualifying institutions), providing credit to small and medium-sized enterprises to enhance employment and income-generating measures. By developing the priority areas, contributions can be utilized more effectively and coordination with other contributing institutions becomes easier.
➔ Especially supporting Turkey's preparation for membership in the European Union by strengthening the administrative and executive capacities of municipalities.
➔ Maintaining close coordination with other contributing institutions (EU Commission, World Bank, UN agencies).
➔ Providing tools for closer cooperation with the private sector through financial contribution as part of investments.
The economic cooperation of the Federal Republic of Germany is divided into two main areas: bilateral cooperation and multilateral cooperation. Within the framework of bilateral cooperation, the German Government provides financing for priority investments in development either as low-interest loans, with 60% as a grant, or entirely as a grant (Financial cooperation). The German Government assigns the KfW Development Bank to supervise the projects and implement them in cooperation with Turkish partners.
✓ French Development Agency (AFD)
The aim of the loans offered by the French Development Agency is to support municipal investments made in high environmental impact sectors. Promotion of Turkish municipal investments appears to be an important development issue. Through financing provided by AFD, Denizbank can offer Turkish municipalities long-term resources to manage their projects, primarily aimed at environmental protection. AFD loans aim to support projects in secondary cities, particularly in water and sanitation, solid waste management, and urban transportation. A bold training program/technical assistance (Capacity Development Support Program) has been jointly developed towards municipalities by Denizbank and AFD to support the dynamics of the project. This program aims for the procedures and tools to ensure complete efficiency of the fund to be adopted by Turkish local government managers in the ongoing localization process in Turkey. Approximately thirty municipal projects, at least 60% of which are non-metropolitan municipalities, will be financed through the opportunities provided by AFD.
Support Provided by Embassies
✓ Direct Assistance Program (DAP) from the Australian Embassy
The aim of the support; The Australian Embassy's Direct Assistance Program (DAP) is flexible and small grants aimed at addressing humanitarian challenges in the long term and sustainably. DAP funds are utilized to support participatory small-scale development activities and to ensure the involvement of beneficiaries in the identification, design, and management of projects. Special emphasis is placed on projects benefiting women, children, and other disadvantaged groups, as well as those related to the environment.
The fund amount is a minimum of 3,000 Australian dollars - a maximum of 10,000 Australian dollars. DAP funds are open to institutions/organizations engaged in non-profit development activities and civil society organizations. Activities that are entitled to the project are generally implemented within very short timeframes, usually not exceeding one year.Grantexamples include: community health, education, small-scale infrastructure, rural and agricultural development, and the environment.
✓ Small Scale Embassy Projects (MATRA KAP) Program - Netherlands
The aim of the small-scale embassy projects program is to foster the development of an open, pluralistic, and democratic society. The program emphasizes the importance of strengthening civil society structures and collaboration and interaction between private sector organizations and public institutions. Priority areas include legislation and laws, public administration, public order and police, information and media, human rights and minorities, environment, civil society organizations, environmental authorities, labor and social policy, culture, welfare, health, housing, and education. The maximum grant amount that can be provided per project is €15,000. A partnership with a partner based in the Netherlands is required for the "MATRA Projects Program." However, in the "MATRA KAP Program," collaboration is not a prerequisite. NGOs, local authorities, educational institutions, etc., can directly apply to the Dutch Embassy in Ankara or the Dutch Consulate in Istanbul.
Applications can be made three times a year within the program. These applications must be submitted before the end of February, May, and August.
✓ Project Financing – United Kingdom
Priority areas for funding include democracy, rule of law, human rights, strengthening civil society, expanding the influence of civil society organizations, and environmental issues.
There are two types of funding sources that can be applied for project funds:
➔ UK Embassy Projects: The UK Embassy and Consulate-General may decide to allocate funds for small projects (up to £5000). Project proposals can be submitted at any time during the financial year between April 1 and March 31.
➔ UK Government Projects: For larger projects, project proposals must be submitted to the approval of the UK Foreign Office by filling out a standard Program Application Form. Due to the lengthy analysis required for a project proposal, applications for proposed projects for the following financial year must be made in November. The allocation of required resources for activities generally concludes at the beginning of April.
The budgets of the UK Commonwealth program can generally be used to support activities lasting maximum three years from a single financial year. Local small projects funded must be completed within the financial year in which funding is allocated.
Project proposals must meet as many of the following criteria as possible:
➔ Support for the development of civil society and special skills and expertise;
➔ Sustainability
➔ Have a "multiplier" effect; in short, having the widest possible impact
➔ Produce a clearly achievable product
✓ Japanese Embassy Grant Program for Local Projects (GGP)
The "Local Projects Grant Program (GGP)" has been implemented since 1989 by the Japanese State under the scope of the "Japan Official Development Assistance (Japan ODA)" in underdeveloped and developing countries. The program aims to provide non-repayable financial support for development projects aimed at addressing basic humanitarian needs. Civil society organizations and municipalities can apply. Project applications will be accepted from all regions of Turkey, and projects will be implemented throughout the country. However, priority will be given to projects in the Eastern and Southeastern Anatolia regions. The maximum grant amount that can be allocated per project is 10 million Japanese Yen (approximately 100,000 USD). The Value Added Tax (VAT) regarding project expenditures is not covered by the Embassy. The subjects of projects must be on issues regarding disadvantaged groups in society and aimed at meeting basic humanitarian needs. Accepted project topics include: Basic Health, Disabilities, Women in Development, Public Benefit / Other Disadvantaged Groups, and Capacity Building and Training: Vocational training, capacity building programs for specific communities.
✓ Canada Fund and Canada International Development Agency Countries in Transition Program (CIT)
The purpose of the support is to use the Canada Fund to support NGO projects in line with Canadian Government priorities. Local formations, the participation of individuals and groups in development activities, and volunteerism are encouraged. The program aims to strengthen and fund the activities of individuals, local and regional governments, and non-governmental institutions.
Eligible activities for projects include; organizing seminars, workshops, and conferences; public education; preparing and printing informational materials for skill improvement; contributing to the salary of the project coordinator; purchasing office equipment directly contributing to the project purpose (such as specialized software or hardware). The total budgets are CND $75,000, with a minimum of CND $5,000 and a maximum of CND $20,000 per project.
Investment Incentives for Municipalities
Priority Support Elements | GENERAL INCENTIVE | |
VAT Exemption 18% | YES | |
Customs Duty Exemption 2% | YES | |
Tax Reduction | Tax Reduction Rate | NO |
Investment Contribution Rate | NO | |
Investment period tax reduction | NO | |
Operation period tax reduction | NO | |
Employer's Share of Insurance Premium Support | Application Duration | NO |
Maximum Amount of Support (Ratio of Support Amount to Fixed Investment Amount) | NO | |
Investment Site Allocation | NO | |
Interest Support | Domestic Credit | NO |
Currency / Currency-Indexed Credit | NO | |
Maximum Support Amount (Million TL) | NO | |
Insurance Premium Support | NO | |
Income Tax Withholding Support | NO | |
Construction-Structure Fees Exemption | NO | |
Property Tax Exemption | NO | |
Stamp Duty Exemption | NO | |
*Local authorities can apply to the investment incentive system managed by the Ministry of Economy's Directorate General for Incentive Implementation and Foreign Capital.
Municipalities will be exempt from the value-added tax (VAT 18%) arising in the purchase of new machinery and equipment they will use in infrastructure, superstructure, and all types of transportation services. They can benefit from customs duty exemption (2%) for machinery and equipment to be acquired from abroad.
In order to benefit from this exemption, an investment incentive certificate must be issued in the name of the municipality.
In the investment incentive system, the minimum investment amount has to be 3,000,000 TL in regions 1 and 2, and 1,500,000 TL in regions 3, 4, 5, and 6 (the total amount of one or more machinery and equipment to be acquired).
The investment incentive certificate and the duration of the investment is 3 years. Within this period, the desired machinery and equipment can be procured.
Machinery that can be acquired; Graders, Loaders, excavator loaders, tracked loaders, wheeled excavators, tracked excavators, hydraulic breakers, rescue vehicles, earthquake rescue vehicles, front rescue vehicles, compactors, water and gas leak detection machines, and their special equipment, joint cutting machines, vibrators, multipurpose small rollers, compacting garbage trucks, street sweepers, vacuum trucks, fire tankers, emergency intervention vehicles and tankers, combined channel opening machines, bituminous surface coating machines, channel viewing cameras, water leak listening microphones, water leak detection systems, portable gas leak analysis devices, gas leak detection systems, clean air supply breathing apparatus, deep well inspection systems, manhole lid detectors, cable pipes, ground and depth detection systems, salt spreading and snow clearing vehicles, fly and mosquito spraying machines, transformers, submersible pumps, motor pumps, generators, tree uprooting and planting machines, rescue vehicles, hydraulic lifts, street sweepers, compressors, water drilling machines, funeral waiting-washing vehicles and their equipment, buses to be purchased for intra-city passenger transport, drinking water and wastewater pipes (PE/HDPE/CORRUGATED (steel types)), wastewater and clean water treatment units, asphalt finishers, which are any vehicles and construction machinery needed by the municipality will be exempt from VAT when purchased together with the incentive certificate.
These machines will also be exempt from VAT and customs duties and taxes when acquired from abroad.
If the municipality will make investments such as concrete plants and their equipment, asphalt plants and their equipment, border pipe machines, cold storage facilities, and drinking water bottling facilities, these cannot be included in this municipal service incentive. The municipalities must apply for a separate incentive for these investments.
Acquiring dumper trucks and flatbed trucks, passenger vehicles, ambulances, computers, printers, fax machines, photocopiers, etc. can be included in the incentive certificate, but they cannot benefit from VAT exemption.
To obtain an investment incentive certificate, municipalities need to be VAT taxpayers, have authority from the council's decision, entrust authority to the mayor, and provide the signature circular of the mayor.
Minimum Investment Amounts for Supports to Municipalities
o 3 million TL in regions 1 and 2,
o 1,500,000 TL in regions 3, 4, 5, and 6.

