EUR 195 million loans will be provided to Istanbul for a 13-km metro extension project, which has a total value of EUR 410 million.
Three institutions are involved in these loans. The EBRD provides a EUR 97.5 million syndicated loan, of which Société Générale will provide a tranche of EUR 20 million under an A/B structure. An additional loan of EUR 77.5 million will be extended separately by the Black Sea Trade and Development Bank (BSTDB).
The project envisages the construction of a new 13-km line that will complement the three existing lines of Uskudar-Cekmekoy, Kadıkoy-Tavsantepe and Marmaray with a link from the north to the south side of the city. The construction of the new metro line will include two depot tunnels for rolling stock and a single connection tunnel.
After the completion of the project, it is expected that the line will add a total of 350,000 passengers a day to the city’s rail transport network.
“The project is remarkable as it addresses some of the key challenges facing Istanbul, such as improving urban transport and reducing environmental pollution, bringing tangible improvements to people’s lives,” Arvid Tuerkner, EBRD Managing Director for Turkey, said.
Shifting traffic from private cars to public transport is essential to combating congestion and reducing carbon emissions. However, to achieve this, a massive expansion of environmentally friendly transport, such as the metro, is critical.