DSI's 2026 Investment Programme: Priority Provinces and Where the Budget Flows

A Record-Budget Investment Programme

The General Directorate of State Hydraulic Works (DSI) has put the 2026 investment programme into effect with a 142 billion TL budget. The programme, up 38 percent in nominal terms versus the previous year, focuses on drought risk, food security and wastewater infrastructure. Around 47 percent of the budget is allocated to irrigation, 22 percent to drinking water, 18 percent to flood protection and 13 percent to hydroelectric items.

Priority Provinces List

Three axes shaped DSI's regional distribution: agricultural production potential, drought pressure and drinking water gap. Provinces standing out in the 2026 programme:

Şanlıurfa, Mardin, Diyarbakır: Final phase of GAP integrated projects, 18 billion TL share
Konya, Karaman, Aksaray: Closed basin management and modernisation, 12 billion TL
Adana, Mersin, Hatay: Lower Seyhan and Asi basin irrigation upgrades, 9 billion TL
Çankırı, Çorum, Yozgat: Central Anatolia drinking water lines, 4.5 billion TL
Van, Ağrı, Iğdır: Border basin irrigation projects, 3.8 billion TL

A notable item on the list is the acceleration of pressurised irrigation conversion projects launched to limit groundwater use in the Konya Basin, the most drought-affected basin of the past three years.

Modernisation in Irrigation: Drip and Sprinkler

A significant share of irrigated areas in Turkey still rely on open canal systems. DSI plans to raise the share of pressurised irrigation to 70 percent by 2030. The 2026 programme envisages converting 480,000 hectares from open canal to closed systems. Expected impacts of the modernisation:

Average 35 percent saving in irrigation water use
Reduced labour requirement per field
A clear decrease in evaporation losses
A 15-20 percent increase in agricultural yield

Drinking Water and Wastewater Intersection

A standout item in the programme is a joint fund for drinking water and wastewater infrastructure for small and mid-sized municipalities. This 18 billion TL pool targets simultaneous improvement of drinking water treatment and wastewater discharge criteria in settlements of fewer than 50,000 people. Under the model run jointly with Iller Bank, the municipalities' own-resource contribution is set at 25 percent.

Flood Protection: Climate Risk on the Agenda

Flash flood events in 2024 and 2025 brought a doubling of the budget allocated to flood protection in nominal terms. The Black Sea coastal strip, the Mediterranean basin and the northern districts of Marmara are among the priority intervention zones. The 2026 programme includes 380 km of stream rehabilitation, 42 flood protection ponds and the installation of 19 early warning stations.

Financing Mix

The entire budget is not financed from the central budget. Financing mix of the DSI programme:

Central budget: 58 percent
World Bank and AIIB loans: 19 percent
EU IPA funds: 7 percent
Iller Bank co-financing: 11 percent
Build-operate-transfer model (HEPP component): 5 percent

The rising share of international loans is tightening environmental and social assessment processes for projects, which in turn drives demand for consulting, environmental impact assessment and supervision services.

Sector Implications

DSI's 2026 programme is an important demand signal for Turkey's water and wastewater infrastructure sector. Notable activity is expected over the next three years in pipes, pumps, measurement equipment, closed-system irrigation components and engineering services. As a natural consequence of the programme, strengthening of domestic production share requirements is also on the agenda.