EUR 450 million for Bosphorus Tunnel in Istanbul

Marmaray project, one of the world's most ambitious urban transport projects and a milestone international railway link is connecting the Asian and European sides of the Bosphorus.

The European Investment Bank is extending a loan of EUR 450 million to the Republic of Turkey to part-finance the infrastructure of the urban rail system including an international railway link as well as an urban rail commuter project. The 76 km railway line will connect Halkali on the European side of the city with suburban Gebze on the Asia side, sharply reducing travel time between the two and helping relieve the city of the growing traffic congestion. The rail system will carry 75.000 passengers and hour and link with the municipal light-rapid rail system and metro. Some 63 km of the system will be above ground, while 14 km will be underground including a 1.4 km tunnel under the Bosphorus. Thirty-seven existing stations will be upgraded while three underground stations will be constructed. The project, scheduled for completion in March 2010 is supported in total with a EUR 650 million loan from the EIB. The Ministry of Transport's Directorate General for Railroads, Ports and Airports' construction is overseeing the project.

Described by Vice-President Wolfgang Roth in charge of Turkey as the project of the century, Marmaray aims to ease the growing passenger and freight traffic in one of Europe's largest cities counting more than 12 million inhabitants.

Despite a rigid adherence to a programme of tight budgetary policy the country goes ahead with several large infrastructure projects ranging from urban transport and inter-city express roads to hydroelectric dams and water and sewerage systems receiving large government funding. Foreign banks, governments and international lending institutions are encouraged by the country's strong economic performance, falling inflation and dropping interest rates and the perspective of joining the EU.

Despite a rigid adherence to a programme of tight budgetary policy the country goes ahead with several large infrastructure projects ranging from urban transport and inter-city express roads to hydroelectric dams and water and sewerage systems receiving large government funding. Foreign banks, governments and international lending institutions are encouraged by the country's strong economic performance, falling inflation and dropping interest rates and the perspective of joining the EU. Infrastructure projects that have received EIB funding in recent years include:

• Silivri underground gas storage - EUR 90 million
• Samsun light rail transit system - EUR 65 million
• Eskisehir urban development project -EUR 110 million

The Bank's cumulative financing in Turkey stands at EUR 4 billion and relates to investments in a wide range of economic sectors. Municipal financing for investments in environment and urban transport represent some 31 % of which 11% was directed to earthquake damage reconstruction.