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EBRD lends Turkey 150 mln euro for Istanbul - Bulgarian border railway construction

Author Vasil Kolchev
EBRD lends Turkey 150 mln euro for Istanbul - Bulgarian border railway construction Photo: General Directorate of Infrastructure Investments

SOFIA (Bulgaria), November 17 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) is extending a 150 million euro ($170.3 million) loan to Turkey for the construction of a 67 km section of the high-speed railway line from Istanbul to the border with Bulgaria, the lender said.

The financing was approved by the bank’s board of directors on November 10 and signed earlier this week, the EBRD said in a statement on Tuesday.

The Asian Infrastructure Investment Bank (AIIB) is considering parallel financing, while the Turkish government will provide the remaining funds needed for the 640-million-euro infrastructure project.

The double-track Ispartakule-Cerkezkoy section is part of the electrified Halkali-Kapikule railway line, co-financed by EU funds via the Instrument for Pre-accession Assistance (IPA). The line is part of the EU Trans-European Transport Network (TEN-T) and will provide safe, sustainable and low-carbon passenger and freight transport to and from the EU, improving connectivity and trade. Furthermore, the loan will further support Turkey’s transition to a low-carbon economy, the EBRD noted.

"(The project) is expected to improve Turkey's internal and cross-border connectivity and is also an important opportunity to nurture our productive partnership with the EBRD for the future,” Turkey’s finance minister, Lütfi Elvan, said.

($ = 0.8807 euro)