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.
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.