Turkey is set to obtain €2.1bn in green financing from the UK Government for a new high-speed electric railway project in the country.
Through its Buyer Credit Scheme, the UK Export Finance (UKEF) will provide the funding for the new 503km electric-powered railway line between Turkey’s capital city Ankara and the port-side city of Izmir.
For arranging the funding, Credit Suisse and Standard Chartered will organise and coordinate with the banks.
Designed as a reduced-carbon alternative to current air and road routes, the new line will facilitate faster transport from Ankara to Izmir.
The project is also expected to play a significant role to fulfil climate change commitments of Turkey announced at COP26.
UK International Trade Secretary Anne-Marie Trevelyan said: “Turkey is a vital trading partner for the UK. Our shared global outlook on free trade and the environment is the driving force behind economic growth in our two nations.”
Companies in the UK will receive major contracts for the project.
They are expected to deliver turnouts, point machines, railway lines, and fasteners for the project.
Additionally, the companies will supply material and equipment for signaling, telecommunication, and electrification systems, freight services and insurance for the new rail line.
To support the project, engineering and construction firm ERG International Group will coordinate with the UK supply chain.
Turkey Treasury and Finance Minister Dr Nureddin Nebati said: “Referring to the Bilateral Cooperation Agreement signed between the UK and Türkiye in 1999, we have successfully achieved the closing of the landmark financing of Ankara İzmir High-Speed Railway Project under the green loan structure.”