The UK Export Finance (UKEF) has provided a GBP 680 million (EUR 781 million) loan to support construction of Mersin-Adana-Gaziantep high speed rail which will cross Osmaniye.
The loan will enable Rönesans Holding to finish construction of the 286 km high-speed electrified railway line in southern Turkey.
The UK government’s export credit agency says that the deal is expected to create new, multimillion-pound export contract opportunities for the UK’s infrastructure, engineering and project management sectors.
“UK Export Finance’s backing for this transformative high-speed railway adds to this success story. This deal shows that the UK, home to the world’s first railway system, still moves full steam ahead with its export of railroad innovation and expertise,” Lord Offord, Minister for Exports, 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. Rönesans Holding has already engaged with UK suppliers to negotiate contracts for electronic infrastructure, ESG consultancy services, catenary and mechanical components.
UKEF worked in partnership with J.P. Morgan, ING Bank and BNP Paribas, who provided the loan, as well as SACE and OeKB – the Italian and Austrian export credit agencies providing reinsurance – to secure this landmark deal for Turkish rail infrastructure.
In replacing the current railway, which relies on diesel locomotives, the electrified Mersin-Adana-Gaziantep high speed rail will provide a lower-carbon alternative to existing routes between the two cities. Project forecasts suggest that the completed route will save 157,000 tonnes in CO2e emissions in its first year alone.
Able to carry trains travelling up to 200 km/h, this railway connection is a major step forwards for regional infrastructure and growth. The high-speed railway will reduce the travel time between the Mersin Gaziantep to four hours.
“Mersin, Adana and Gaziantep are among the highly industrialised and important cities of the region with their deep-rooted cultural heritage. This project will ensure a reduction of transportation costs, decrease travel time between Mersin and Gaziantep and strengthen our railway connectivity,”Treasury and Finance Minister for Türkiye, Mehmet Şimşek, said.
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