EBRD, BSTDB provide £154m in funding for Istanbul Metro extension

WCN Editorial Team 30 Sep 2019 EUROPE TRANSPORT INFRASTRUCTURE

The European Bank for Reconstruction and Development (EBRD) has offered a loan of €97.5 (£86m) and Black Sea Trade and Development Bank (BSTDB) provided a loan of €77.5m (£68m) to extend metro rail services in Istanbul, Turkey.

The loan will support the construction of a new metro line, with 11 stations connecting districts on the Asian side of Istanbul. The total cost of the project is estimated to be €410m (£363m).

EBRD’s syndicated loan of €97.5m includes $20m (£17.7m) tranche will be provided by Société Générale.

The extension will be 13km long and will complement the three existing lines of Uskudar-Cekmekoy, Kadıkoy-Tavsantepe and Marmaray with a link from the north to the south side of the city. When completed, the line will add a total of 350,000 passengers a day to the city’s rail transport network.

The metro extension could help in minimising traffic congestion and can help in reducing carbon emissions.

EBRD Turkey managing director Arvid Tuerkner said: “We welcome this agreement, which combines in an exemplary way what the EBRD stands for and can offer Turkey. We started this engagement when it was difficult to attract commercial lenders, demonstrating that we are a reliable partner in challenging times.

“The project is remarkable as it addresses some of the key challenges facing Istanbul, such as improving urban transport and reducing environmental pollution, bringing tangible improvements to people’s lives.”

The construction of the new metro line will be complemented by two depot tunnels for rolling stock and a single connection tunnel.

EBRD infrastructure managing director Nandita Parshad said: “Infrastructure development in line with economic and environmental needs is of the utmost importance for Turkey. As a longstanding partner, the EBRD is proud to deploy its expertise and experience in this project and stands ready for further engagement in the sector.”

In July this year, EBRD, the Asian Infrastructure Investment Bank (AIIB) and BSTDB have contributed a financial package of $350m to add 100MW capacity to EFELER, Turkey’s largest geothermal power plant.

EFELER is located in western Turkey in the region of the Büyük Menderes Graben basin, the area has a high potential for geothermal energy.

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Image: EBRD supports Metro extension in Istanbul, Turkey. Photo: Courtesy of The European Bank for Reconstruction and Development.

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