The FINANCIAL — In a move that will boost the development of Turkey’s most populous metropolitan area, the EBRD is providing an €88.3 million loan to the Istanbul Metropolitan Municipality to finance the expansion of the city’s metro line.
Istanbul, a globally recognised city of unparalleled dynamics and vibrancy, is also one of the fastest growing cities in the world. Its current population exceeds 14 million.
To meet the constantly growing demand for public transport, the Istanbul Metropolitan Municipality aims to expand the existing 145 km metro network to 450 km by 2019 and to 650 km by 2030.
As part of this ambitious urban development plan, the city is building the Atakoy Ikitelli Metro Line in the European part of Istanbul. The line will be 13.4 km long with 12 stations and connect western Istanbul from north to south, linking six main lines of the city’s public transport system. The new line is expected to go into service in 2019.
The total project cost is €338.3 million to which the European Investment Bank is contributing parallel financing of €250 million. The EBRD and EIB loans will finance civil works and electro-mechanical installations, according to EBRD.
Jean-Patrick Marquet, EBRD Managing Director for Turkey said: “Located amid historic land and sea trade routes that connect Central Asia with Europe, Istanbul has developed a diversified economy with strong services, trade, tourism and manufacturing sectors. The regional economy accounts for over one-quarter of Turkey’s economy. The city urgently needs a larger public transport network to continue fuelling the growing economy and keep its increasing population on the move. Following the successful launch of the Eurasia Tunnel under the Bosphorus straits, financed by both the EBRD and the EIB, we are pleased to continue working together to deliver financing for this new prestigious project which will make a real difference to this metropolis.”
Eyyup Karahan, Deputy Secretary General at the Istanbul Metropolitan Municipality, said: “We are moving towards our 2023 targets and this project, funded jointly by the EBRD and the EIB, will help us meet the increasing demand in public transport as the population continues to grow. We believe that the project will contribute to the expansion and integration of the public transportation systems.”
The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. The country is a top destination for the Bank’s finance, with €1.9 billion invested in 2016 alone. To date, the Bank has invested over €9 billion in Turkey through more than 220 projects across many sectors and has mobilised nearly €20 billion for these ventures from other sources of financing. Some 98 per cent of the Bank’s investments in Turkey are in the private sector.
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