EBRD eyes financing construction of missing link of Middle Corridor in Türkiye

The European Bank for Reconstruction and Development (EBRD) is exploring the possibility of providing Türkiye with a sovereign loan of up to €500 million, Report informs referring to the EBRD.

The project will be implemented through the General Directorate of Infrastructure Investments (AYGM). The loan proceeds will be utilised to finance the construction of 127 km greenfield railway line that will serve as a bypass of the Istanbul Metropolitan Area and provide a high-capacity overland crossing across the Bosphorus (the project).

The proposed railway line will start at the Cayirova station on the Asian side and end at the Catalca station on the European side, crossing the Bosphorus Strait using the existing track space allocated for this purpose on the Yavuz Sultan Selim Bridge, also known as the Third Bridge, at the Bosphorus' northern end. The line will be double-tracked, electrified, fully signalized, and mixed-used, designed to carry passengers and freight.

The project provides an integral missing link for the three international rail-served trade corridors crossing Istanbul: the Trans-Caspian Middle Corridor linking China and Central Asia with the rest of Europe via rail and short-sea shipping connections; the Iraq Development Road corridor, which would link Asia and the European Union (EU) via the Middle East and Türkiye by rail; and the Türkiye-EU corridor, which accounts for a third of Türkiye's international trade.

The project aims to: enhance the resilience, efficiency, and competitiveness of Türkiye's national logistics network; significantly boost rail freight capacity and increase rail modal share; set the enabling conditions to attract private sector investment and to foster innovation in logistics services; and increase the accessibility of Istanbul Airport (IST) on the European side and Sabiha Gokcen Airport (SAW) on the Asian side by linking them to the rail network.

The project involves the development of safe, sustainable, low-carbon passenger and freight rail transport across the Bosphorus. The Project would further facilitate international trade via a new high-speed railway line starting at the Cayirova station on the Asian side and ending at the Catalca station on the European side. It enhances Türkiye's connectivity to the European Union and other key international rail-served trade corridors.

The total Project cost is estimated at EUR 7.799 billion (equivalent of $8.1 billion) for an approximately 127 km railway line.

World Bank, Asian Infrastructure Investment Bank, Islamic Development Bank, Asian Development Bank and OPEC Fund for International Development are expected co-financiers.