Türkiye concludes an international agreement to finance a railway linking Asia and Europe economy

Türkiye has reached a preliminary agreement with international lenders, including the World Bank, to provide financing worth $6.75 billion for one of the largest railway projects ever in the country, according to Bloomberg.

The Turkish Ministry of Transport and Infrastructure said, in a statement on Tuesday, that the new 125-kilometre Northern Ring Railway project will transport passengers and goods between the Halkali area on the European side of Istanbul, and the Gebze industrial zone on the Asian side of the city.

The ministry added that the line will cross the Bosphorus Strait via the Sultan Yavuz Selim Bridge.

Bloomberg reported that the track will connect the city’s two main airports, and will contribute to alleviating the movement of freight and passengers on the existing high-speed train lines, adding that it will be the largest foreign-funded railway project in Turkey’s history.

Funders

The initial agreement includes the World Bank, the Asian Infrastructure Investment Bank, the Asian Development Bank, the Islamic Development Bank, the European Bank for Reconstruction and Development, and the OPEC Fund for International Development.

The announcement did not include the terms of the financing agreement.

Turkey held talks in 2023 with the UAE to finance the project, but the two parties did not reach an agreement, before Ankara later turned to the World Bank, according to Bloomberg.

The ministry’s statement quoted Minister Abdulkadir Oraloglu as saying that the government hopes to issue a tender and begin construction work later this year.

He added that the project will require the construction of 44 tunnels and 42 bridges.