Istanbul, Turkey, September 26, 2008—
IFC, a member of the World Bank Group, will help Istanbul finance the construction of the 20-kilometer Kadikoy-Kartal metro rail line on the fast-growing Asian side of the city. The extension will help reduce travel times and improve mobility on the Anatolian side of Istanbul.
IFC will provide a senior loan of up to €50 million to the Metropolitan Municipality of Istanbul. The IFC loan is provided in parallel with other financial institutions, as part of a €526 million commercial bank facility.
“The total value of the project is €776 million, and we are very pleased that IFC is supporting the extension of the Istanbul’s Metro system”, said Huseyin Eren, Deputy Secretary General of MMI.
Population growth in Istanbul has been one of the highest among large metro regions in the industrialized world. MMI, the largest of Turkey’s 16 metro municipalities, is the local government body responsible for providing city-wide infrastructure services, including public transport, to the metropolitan area.
Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia, said the Metro extension “will help make Istanbul a more attractive business location and improve the life of its citizens. This project is also a good example of how Turkish municipalities can move towards greater reliance on market-based financing for large infrastructure programs.” He said IFC will continue supporting development of infrastructure in Turkey, including electricity, transport and utilities. IFC will also help stimulate the flow of foreign direct investment.
Istanbul, a mega-city of over 13 million that is home to nearly 20 percent of the national population, plays a vital role in Turkey’s economic and social life. Around 27 percent of the national GDP comes from Istanbul, generating around 40 percent of national taxes and accounting for half of all Turkish exports.
“This project will extend coverage of a clean, safe and efficient mode of public transit along a heavily congested traffic corridor, thereby helping reduce travel times and carbon emissions and improve urban mobility and access to services” said Vincent Gouarne, Director of the IFC Subnational Finance Department.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
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