Turkey to get €2.1bn in green financing from UK

Turkey is set to recieve €2.1 billion in green financing from the UK Government for a new high-speed electric railway project.

Credit Suisse and Standard Chartered will organise and coordinate with the banks (Photo: Gov UK)

The UK Export Finance (UKEF), through its Buyer Credit Scheme, will provide the funding for the new 503km electric-powered railway line between Turkey’s capital Ankara and the portside city Izmir, intended to facilitate rapid transport between the cities.

The project is in line with the climate change commitments Turkey announced at COP26.

UK international trade secretary, Anne-Marie Trevelyan, said, “Turkey is a vital trading partner for the UK. Our shared global outlook on free trade and the environment is the driving force behind economic growth in our two nations.”

Companies in the UK will receive major contracts for the project - they will supply material and equipment for signalling, telecommunication, and electrification systems, freight services and insurance for the new rail line.

To further support the project, engineering and construction firm ERG International Group will coordinate with the UK supply chain.

Treasury and finance of Turkey, Minister Dr Nureddin Nebati, said, “Referring to the Bilateral Cooperation Agreement signed between the UK and Türkiye in 1999, we have successfully achieved the closing of the landmark financing of Ankara Izmir High-Speed Railway Project under the green loan structure.”