Turkiye has obtained a new significant external financing package for the modernization of its railway infrastructure. The Asian Infrastructure Investment Bank (AIIB) has approved a EUR 350 million loan for the project to modernize the railway maintenance systems of the state operator TCDD, the Ministry of Treasury and Finance and the Anadolu agency have announced.
The funds will be used for the construction of new lines, the modernization of existing ones, and the purchase of high-capacity equipment for measurement, inspection, and maintenance work. The project is part of Ankara’s strategy to expand rail transport and reduce dependence on road transport.
Growing external financing for transport
According to official data, Turkiye’s external financing for investment projects exceeded the threshold of USD 15 billion in 2025, of which over USD 5 billion was directed towards transport infrastructure.
In relation to the AIIB alone, the amount attracted this year — including the loan for TCDD — reached USD 800 million, confirming the Asian bank’s role as a major financial partner for Turkiye’s railway projects.
Economic and climate objectives
Treasury and Finance Minister Mehmet Şimşek stressed that railway investments are essential for the competitiveness of the Turkish economy and the modernization of national logistics.
“Investments in railways will increase competitiveness, reduce carbon emissions, and facilitate compliance with the EU’s Border Adjustment Mechanism,” Şimşek said, referring to the European scheme that imposes environmental standards on products imported into the European Union.
The official also said that Turkiye continues to work closely with international financial institutions, amid solid confidence in the government’s economic program.
Network modernization, a strategic priority for TCDD
For TCDD, the modernization of maintenance systems and the purchase of monitoring equipment are essential steps in increasing the safety and efficiency of the network.
The extension of lines and the introduction of advanced inspection technologies are intended to reduce intervention times and improve the reliability of routes that are heavily used for passenger and freight transport.
The project is part of Ankara’s broader program to boost rail transport — a central component of both economic development and reducing emissions from the transport sector.
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