The European Investment Bank (EIB) is providing EUR718 million support for rail transport, electricity distribution as well as energy efficiency and renewable energy in Turkey.
The support is in the form of different lending facilities, with the Undersecretariat of Treasury in favour of the Turkish State Railways (TCDD), with Turkish Electricity Distribution Corporation (TEDAS), and with the main Turkish development banks Türkiye Sinai Kalkinma Bankasi AS(TSKB) and Türkiye Kalkinma Bankasi (TKB).
The contracts were signed by EIB Vice-President Matthias Kollatz-Ahnen, Undersecretary of Treasury Ibrahim H. Çanakci, TEDAS Chairman and General Manager Hasim Keklik, TSKB Member of the Board of Directors and Chief Executive Officer (CEO) Halil Eroglu and TKB Chairman and CEO Abdullah Çelik.
EUR293 million in favour of the Turkish State Railways, TCDD is further strong support for the country’s main transport corridor between Ankara and Istanbul. The additional funding brings the total EIB support for the project to EUR850 million.
This flagship project was first financed by the EIB in 2006. It aims at building the country’s first high speed railway between the country’s two largest cities. The project will lead to significant time gains for travelers along the corridor and will assist economic development, quality of life as well as generating significant environmental benefits.
The project constitutes a key element of the Government’s plans to increase the share of rail transport by improving productivity and effectiveness of railway operations. In addition, the project is strongly supportive of key strategic objectives of EU policy and is a continuation of the Pan-European Corridor IV. It will interconnect with the Marmaray Bosphorus Tunnel Project enabling the passage of high-speed trains across the two continents.
EUR125 million to TEDAS is for the expansion and upgrading of existing electricity networks in order to improve efficiency and reliability of the electricity distribution. The Turkish electricity distribution sector is in need of considerable investments to cope with the significant growth in electricity consumption resulting from the country’s sustained economic growth over the last decade, the growth in population and its increased urbanization and standards of living.
EUR300 million to TSKB and TKB is in the form of a Framework Loan in favour of small to medium-sized investments in renewable energy, energy efficiency and pollution abatement. The Framework Loan is to support investments in Turkey that generate significant environmental benefits, fully in line with EU priorities. Both TSKB and TKB are long-standing partner banks of EIB in Turkey. Through numerous previous funding arrangements, they have proven to be well placed to on-lend EIB funds for the benefit of eligible investments.
The investment schemes will contribute to combating climate change through a reduction in the emission of greenhouse gases and to substitute more carbon-intensive energy sources. Other schemes will focus on industrial pollution abatement, thus generating environmental benefits through improved quality of air, water and land resources.