World Bank Approves Funding for Major Istanbul Railway Project

(MENAFN) Türkiye has secured €1.67 billion ($1.98 billion) in financing from the World Bank to support a large-scale railway project in Istanbul, the Treasury and Finance Ministry announced.

The funds will be used to construct a 127-kilometer (78-mile) rail line connecting the city’s Asian and European sides, providing an additional crossing over the Bosphorus Strait.

Humberto Lopez, World Bank country director for Türkiye, described the initiative as “a strategic and transformational investment for Türkiye. By removing a critical rail bottleneck at the Istanbul Strait and enhancing the resilience and efficiency of rail infrastructure, Türkiye is boosting its competitiveness and reinforcing its role as a logistic hub.”

The line, which bypasses central Istanbul to facilitate smoother Europe-Asia traffic flows, is projected to carry 33 million passengers and 30 million tonnes of freight each year. Key stops include Gebze, Sabiha Gokcen Airport, the Yavuz Sultan Selim Bridge, Istanbul Airport, and Halkali, with roughly half the route running through tunnels.

The World Bank expects the project to create up to 414,000 better-paying jobs, including 99,000 new positions, while supporting growth across the manufacturing, agriculture, and services sectors.

Mehmet Simsek noted that financing secured under favorable terms so far this year totals around €3 billion ($3.47 billion), and total external funding for the project is expected to reach $6.75 billion, with contributions from additional international institutions alongside the World Bank loan.

He added, “Our public investment support for the transportation sector will strongly continue, in line with our Medium-Term Program, which prioritizes sustainable growth and social welfare.”

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