UK government announces 680 million dollar for high-speed electrified rail in Southern Turkey

The UK government has guaranteed a loan of €781 million ($867 million) via its export credit organization UK Export Finance to finish a high-speed railway in southern Turkey.

The electrified rail line will connect Mersin with Gaziantep through Adana and Osmaniye. A Turkish-Dutch business named Rönesans Holding was given the contract for this government project in Turkey.

The provisions of the finance agreement clearly state that Rönesans Holding must obtain the project’s supplies from UK exporters, according to UKEF. The building corporation asserted that contracts for mechanical, catenary, and electronic infrastructure as well as ESG consultancy services had already been discussed informally with UK vendors.

The Mersin-Gazientep line project was financed by the Turkish Transport Ministry using the Buyer Credit Facility of the UKEF.

The UK’s minister for exports, Lord Malcolm Offord, declared: “The trade relationship between the UK and Turkey is strengthening. Last year, the UK sent goods to Turkey worth £8.5 billion, and last week, we unveiled plans for an improved trade deal that will boost both imports and exports between our two nations.

The backing of UK Export Finance for this revolutionary high-speed railway underlines this success story. This agreement shows that the UK, which gave birth to the first railway network in history, is still at the forefront of the export of railway innovation and expertise.

The actual loan was funded by US lender JP Morgan, Dutch bank ING Bank, and French financial organization BNP Paribas.

European companies SACE and OeKB introduced more export finance insurance.

Erman Ilcak, president of Rönesans Holding, said: “Our effective partnership with British exporters has secured €781 million in financing for the ground-breaking 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.”

The importance of modernizing the historic southern trade route and incorporating environmentally friendly transport technology was emphasized by Turkey’s Finance Minister, Mehmet Imşek: “Mersin, Adana, and Gaziantep are three of the region’s most significant and industrialized cities, with a rich cultural past.

“This project will ensure a reduction in transport costs, reduce the travel time between Mersin and Gaziantep, and enhance our rail connectivity.

“This initiative is crucial for integrating the economy, society, and environment in this regard… The project’s main objectives are to improve rail connectivity and offer Turkey a workable alternative transport system.

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