World Bank approves nearly $2B in financing for Istanbul railway project

ANKARA

Türkiye has received €1.67 billion ($1.98 billion) in financing from the World Bank for a major railway project in Istanbul, the Treasury and Finance Ministry said.

The funding will be used to build a 127-kilometer (78-mile) rail line linking the city’s Asian and European sides, offering an additional crossing over the Bosphorus Strait.

"This project is a strategic and transformational investment for Türkiye," said Humberto Lopez, World Bank country director for Türkiye, in a statement Tuesday. "By removing a critical rail bottleneck at the Istanbul Strait and enhancing the resilience and efficiency of rail infrastructure, Türkiye is boosting its competitiveness and reinforcing its role as a logistic hub.”

The line, which bypasses central Istanbul to enable traffic flows between Europe and Asia, is expected to carry 33 million passengers and 30 million tonnes of freight annually.

It will connect Gebze, Sabiha Gokcen Airport, the Yavuz Sultan Selim Bridge, Istanbul Airport and Halkali, and around half of the line will run through tunnels.

The World Bank said the project is expected to generate up to 414,000 better-paying jobs, including up to 99,000 new jobs, while supporting the manufacturing, agriculture and services sectors.

Treasury and Finance Minister Mehmet Simsek said financing secured under favorable terms so far this year has reached around €3 billion ($3.47 billion).

Total external financing for the project under favorable terms is expected to reach $6.75 billion, with additional funding from other international institutions alongside the World Bank loan.

“Our public investment support for the transportation sector will strongly continue, in line with our Medium-Term Program, which prioritizes sustainable growth and social welfare,” Simsek said.

He also highlighted continued cooperation with the World Bank, with an additional $18 billion projected to be added to the existing $17 billion portfolio under the 2024-2028 Country Partnership Framework.

In a statement, the World Bank said it “remains committed to supporting Türkiye in building sustainable, resilient infrastructure that promotes inclusive growth and strengthens regional integration.”

*Writing by Emir Yildirim in Istanbul