In order to complete a high-speed railway in southern Turkey, the UK government has underwritten a loan of €781 million ($867 million) through its export credit agency UK Export Finance.
Through Adana and Osmaniye, the electrified rail route will link Mersin with Gaziantep. It is a government project in Turkey, and Rönesans Holding, a Turkish-Dutch company, was awarded the contract.
UKEF clarified that Rönesans Holding must source the project’s supplies from UK exporters under the terms of the funding deal. The building corporation claimed that it had already begun discussions with UK vendors about contracts for mechanical, catenary, and electronic infrastructure as well as ESG consulting services.
The UKEF’s Buyer Credit Facility was used to finance the Turkish Transport Ministry’s Mersin-Gazientep line project.
Lord Malcolm Offord, the UK’s minister for exports, stated: “The trading relationship between the UK and Turkey is strengthening. Exports from the UK to Turkey were £8.5 billion last year, and last week we unveiled proposals for an upgraded trade agreement that will increase imports and exports between our two countries.
“UK Export Finance’s support for this game-changing high-speed railway strengthens this success tale. This agreement demonstrates that the UK, which was the birthplace of the world’s first railway system, is continuing to lead the way in the export of railway innovation and experience.
The actual loan was funded by French financial institution BNP Paribas, ING Bank of the Netherlands, and US lender JP Morgan.
Additional export financing insurance was added by European firms SACE and OeKB.
“Our successful collaboration with British exporters has secured €781 million in financing for the revolutionary high-speed electrified railway in southern Turkey, adding tremendous value to the cooperation between Turkey and UK exports and services and paving the way for exciting global partnerships,” said Erman Ilcak, president of Rönesans Holding.
Mehmet Imşek, Turkey’s Finance Minister, emphasized the significance of modernizing the ancient southern trade route and integrating environmentally friendly transport technology: “Mersin, Adana, and Gaziantep are three of the region’s most significant and industrialized cities, with a rich cultural past.
“This project will guarantee a decrease in transportation expenses, shorten the time it takes to get from Mersin to Gaziantep and improve our rail connectivity.
“In this regard, this project is essential for integrating the economy, society, and environment… The project’s primary goals are to increase rail connections and provide a viable alternative transport system in Turkey.