The UK announces $872m for new high-speed electric railway in Turkiye

The UK government yesterday announced that it is financing the construction of a high-speed electrified railway in southern Turkiye.

The announcement came from the UK government’s export credit agency, UK Export Finance (UKEF), which has underwritten £680 million ($872 million) for the project. The construction will enable Turkish conglomerate Ronesans Holding to complete a 286-kilometre (177-mile) electric railway connecting the southern provinces of Mersin, Adana, Osmaniye and Gaziantep.

The deal is projected to create new, multimillion-pound export contract opportunities for the UK’s infrastructure, engineering and project management sectors.

Turkish Treasury and Finance Minister Mehmet Simsek underlined the importance of Mersin, Adana, and Gaziantep for being highly industrialised and their deep-rooted cultural heritage.

This project will cut transportation costs while decreasing travel time between Mersin and Gaziantep, stressed Simsek. “In this regard, this project is crucial for economic, social, and environmental integration,” Simsek noted, adding: “The most important aim of the project is to improve the rail connectivity and create a sustainable alternative transportation scheme in Turkiye. We look forward to continuing our fruitful collaboration with new projects on the way of development of Turkiye.”

The loan, underwritten by the UK Government, has been provided by J.P. Morgan, ING Bank and BNP Paribas.

Minister for Exports Malcolm Offord said: “UKEF’s backing – which has been given on the condition that UK exporters supply to the project – will support continued economic growth in the UK, in line with the government’s priorities.”

READ: IHRC launches campaign to protect mosques from charity omission harassment