Release date: 3 May 2004
Promoter – Financial Intermediary
Ministry of Transport and Communication, General Directorate of Railways, Harbours and AirportsLocation
Description
Construction of the first intercontinental railway between Europe and Asia crossing the Bosphorus, as well as a major transport connection for the metropolitan city of Istanbul. The connection is part of Pan-European transport corridor IV.
Objectives
The project is expected to provide significant economic benefits through major travel time-savings for interurban passengers and freight and, particularly, for the users of public transport within the city of Istanbul. Furthermore, it will help avoid layovers and transhipment costs. The investment will equally contribute to the environment by reducing the need for road-based public transport, for passenger ferries, and possibly for travel by private car, thus lowering the level of congestion, of traffic accidents and of environmental externalities - principally air and noise pollution, and vibrations.
The project sets a milestone by providing the first intercontinental railway link between Europe and Asia crossing the Bosphorus Straits, thus bridging an important gap in the Pan-European transport network. Serving also as a major mass transport connection for the metropolitan city of Istanbul, which is divided by the Straits into Western and Eastern sides, the project promises significant economic benefits.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 600 million.
Total cost (Approximate amount)
Between EUR 2 and 3 billion.
Environmental aspects
Though this project was agreed for inclusion in the Turkish Development Plan at a time (1993) when a full EIA was not required by national law, in practice, considerable environmental information has been collected and approvals have been obtained from the relevant Turkish authorities, covering in substance the requirements of an Environmental Impact Assessment (EIA) according to good international practice.
The process and content of the EIA will be reviewed by the EIB during its appraisal with a view to confirm that the requirements of the EC EIA Directive have been met, according to EIB policy for projects of this type outside the EU. In particular it will be verified that a comprehensive and systematic study will encompass the screening of alternatives and an impact assessment along with proposed mitigation/compensation measures. The appropriateness of the public consultation process as well as the arrangements for environmental management during project implementation and operation will also be reviewed.
Procurement
The project is foreseen to be financed by two main sources of funds, EIB and Japan Bank for International Cooperation (JBIC). Accordingly, and in-line with the Bank's guidelines for procurement it is envisaged that there will be parallel financing, with EIB and JBIC. During appraisal, procurement procedures for all past and future contracts will be checked for consistency with the Bank's guidelines.
Status
Signed - 20/09/2004
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).