Project Components

The project consists of three main components:

(1) A World Bank Loan targeting firms with high potential for job creation (EUR 316 million),

(2) A Grant financed by the EU under the FRIT II program targeting firms - conditional on job creation (EUR 70 million) and

(3) Technical and Institutional Support (EUR 5,9 million for Grant and EUR 0,65 million for the Loan).

The Project aims to support established firms with a consolidated record of sustained job creation and capacity to expand business, and through capacity building in firms, to maximize the project impact and sustainability.

A more detailed breakdown of the Project components are as follows:

Formal Employment Creation Project Components (in EUR)
			Part 3. Technical and Institutional Support		Total Amount
Part 1. Loan - World Bank	Sub-loans under Part 1.A of the Project (Direct Lending-LEs)	125.824.000	Skills building for Sub-loan beneficiary firms (Part 3.A)	650.000	316.000.000
	Subsidiary Financing under Part 1.B of the Project (Apex Lending-SMEs) Front-end fee	188.736.000 790.000	Capacity Building for the implementation of Sub-loans (Part 3.C) (TKYB+PFIs)
Part 2. Grant – EU FRIT-II	World Bank (fees, technical assistance, implementation support and supervision)	4.038.462	Skills building for Subgrant beneficiary firms (Part 3.B)	5.961.538	80.000.000
	Sub-grants under Part 2 of the Project (Sub-grant Beneficiaries – LEs+SMEs)	70.000.000	Capacity Building for the implementation of Subgrants (Part 3.D) (TKYB)
			Monitoring and evaluation of the Trust Fund financed portions of the Project (Part 3.E) (TKYB)
Total Project Budget € 396.000.000

Part 1. Loans targeting firms with high potential for job creation

• Provision of Sub-loans directly to eligible beneficiary Large Enterprise firms in the Selected Provinces to finance Sub-projects
• Provision of Subsidiary Financing to selected Participating Financial Institutions (“PFIs”) to provide Sub-loans to eligible Small and Medium Enterprise (“SME”) firms in the Selected Provinces to finance Sub-projects

Part 2. Grants targeting firms conditional on job creation

Provision of Sub-grants to eligible beneficiary firms operating in the selected provinces, conditional on formal job creation for Turkish citizens and refugees under a Sub-grant scheme, which is based on a firm’s viable business and employment plans.

Sub-Grant Program Overview
Title of the Program	Formal Employment Creation Project Sub-Grant Program
Program Reference No	TKYB/2021/FECP
Overall Objective of the Program	To enhance the conditions for formal job creation by firms operating in growing economic sectors with high employment potential and located in selected 24 provinces with high incidence of Syrians under Temporary Protection (“SuTP”) for the benefit of Turkish citizens and refugees.
Program Priorities	Priority 1: Creating and increasing formal employment for Turkish citizens and refugees Priority  2: Creating and increasing formal employment for women
Total Program Budget (Funded under FRIT II)	EUR 70.000.000
Administrative Authority for the Grant Component	The World Bank
Implementing Agency (Contracting Authority)	Development and Investment Bank of Turkey (TKYB)
Selected Project Provinces (24)	1. Adana, 2. Adiyaman, 3. Ankara, 4. Batman, 5. Bursa, 6. Denizli, 7. Diyarbakir, 8. Gaziantep, 9. Hatay, 10. Istanbul, 11. Izmir, 12. Kahramanmaras, 13. Kayseri, 14. Kilis, 15. Kocaeli, 16. Konya, 17. Malatya, 18. Manisa, 19. Mardin, 20. Mersin, 21. Osmaniye, 22. Sakarya, 23. Sanliurfa, 24. Tekirdag
Allocation and percentages of Sub-grants  by firm Size	Small Enterprises EUR 14.000.000 20%	Medium Enterprises EUR 22.400.000 32%	Large Enterprises EUR 33.600.000 48%
Minimum and Maximum Sub-grant Amounts by firm size	Small Enterprises Min: EUR 15.000 Max: EUR 45.000	Medium Enterprises Min: EUR 25.000 Max: EUR 125.000	Large Enterprises Min: EUR 40.000 Max: EUR 300.000
Requested Sub-grant Amount	The requested sub-grant amount must be between 50% -70% of the total eligible cost of the sub-project.
Human Resources Costs	Human resources costs cannot be less than 70% and cannot exceed 90% of the total eligible cost of the sub-project.
Sub-project Period	Minimum 18 months, maximum 21 months
Eligible Applicants	Small Enterprises          (1–49 employees) Medium Enterprises    (50–249 employees) Large Enterprises         (250 or more employees)
Application Deadline	28.02.2022 - 17.00

Part 3. Technical and institutional support

Skills building for Sub-loan beneficiary firms

Provision of capacity building activities for sub-loan beneficiary firms under Part 1 of the Project, including management practices (including good international practices and standards in environmental and social sustainability), socioemotional skills (including, leadership, teamwork, client orientation), and financial literacy

Skills building for Sub-grant beneficiary firms

Provision of, needs-based, capacity-building activities for Sub-grant beneficiary firms under Part 2 of the Project, including training for said firms’ employees on technical, analytical, and socioemotional skills

Capacity building for the implementation of Sub-Loans

Provision of assistance to support the implementation of Part 1 of the Project, including capacity building of TKYB and PFI staff, through the financing of goods, consulting services, non-consulting services, training, and operating costs

Capacity building for the implementation of Sub-grants

Provision of assistance to support the implementation of Part 2 of the Project (including communications, outreach and visibility activities), through the financing of goods, consulting services, non-consulting services, and operating costs for the project implementation.

Monitoring and evaluation of the Trust Fund financed portions of the Project

Provision of assistance to carry out monitoring and evaluation of activities implemented under Parts 2, 3.B and 3.D of the Project, including data collection and preparation of reports, in support of the related results framework under the Facility for Refugees in Turkey.