Izmir, Turkey, March 10, 2014—
IFC, a member of the World Bank Group, is lending €55 million, and coordinating a further €110 million in financing from the French Agency for Development (AFD) and Dutch banking group ING, to help build two urban tram lines in the districts of Konak and Karsiyaka in Izmir.
IFC’s investment will go towards constructing the tram lines and building the rolling stock. The new trams are expected to contribute to the Izmir Metropolitan Municipality’s efforts to create a more efficient, low carbon public transportation system by promoting a greater role for rail transit, and indirectly foster higher urban productivity and local economic growth.
“The Izmir tram project is an important step towards Izmir becoming a world class city,” said Mayor of Izmir Metropolitan Municipality, Aziz Kocaoglu.
Rapid urbanization puts pressure on governments in the developing world to deliver essential infrastructure services, like affordable transportation.
“This investment is in line with IFC's strategy in Turkey which envisions supporting municipal development and investments in essential public infrastructure by helping metropolitan municipalities access long term financing,” said Carsten Mueller, IFC Associate Director for Turkey.
Izmir, Turkey’s main port on the Aegean coast, is a vibrant city with nearly four million inhabitants. Izmir Metropolitan Municipality, Turkey’s third largest municipality, is the government body responsible for providing infrastructure services to the area. The tram project complements the Traffic Management and Emergency Response project, for which IFC coordinated a financing package of €45 million in December 2012. IFC also coordinated a financing package of €111 million for the Sea Transportation project in May 2013.
The World Bank Group’s Multilateral Investment Guarantee Agency will guarantee the financing secured from ING.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information please visit
www.ifc.org
.
Stay Connected
