KfW IPEX-Bank is contributing EUR 200 million towards the financing of the Hassa-Dörtyol rail and road tunnel in Turkey. This includes one tranche covered by Swedish export credit agency EKN and a commercial tranche secured by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Alongside seven international banks, KfW IPEX-Bank is acting as Mandated Lead Arranger. Société Générale is coordinating the financing totalling almost EUR 1.55 billion.
“With this transaction, we not only underline our expertise in financing sustainable rail infrastructure and export finance, but also support efforts to strengthen the region’s resilience to major earthquakes,” said Aida Welker, member of the management board of KfW IPEX-Bank.
The 25-km Hassa-Dörtyol rail and road tunnel will connect the cities of Dörtyol and Hassa in Hatay province. It is of high strategic value, providing a direct link between industrial hubs in southeastern Anatolia and the key port of Iskenderun on the eastern Mediterranean.
This will significantly reduce transport times for freight and passengers, while also cutting CO₂ emissions by avoiding a major detour around the Nur Mountains. The tunnel will further benefit the regions severely affected by the 2023 earthquake by establishing earthquake-resistant road and rail infrastructure. A significant portion of the construction materials and equipment will be supplied by European companies.
The project is being carried out by a joint venture of EPC contractors Doğuş İnşaat ve Ticaret and Eze İnşaat. The project is owned by AYGM, the General Directorate of Infrastructure Investments at the Ministry of Transport and Infrastructure of the Republic of Turkey, while the Republic of Turkey’s Ministry of Finance is acting as the borrower.
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