World Bank approves $660 mln financing for railway project

WASHINGTON

The World Bank Board has approved $660 million in financing to support Türkiye’s efforts to expand electric rail transportation that will help improve the efficient movement of goods across the country, boost exports, create jobs and reduce greenhouse gas (GHG) emissions.

The Eastern Türkiye Middle Corridor Railway Development Project will help expand and modernize one of the oldest and outdated sections of Türkiye’s existing limited rail network, the multilateral development lender said in a statement.

It will replace diesel-powered trains and expand connectivity between Divriği, in Sivas province, and Kars, near the border with Georgia, in the country’s northeast via a 660-kilometer, fully electrified and modern railway line.

The Divriği-Kars-Georgia border section is also a key element of the Trans-Caspian International Transport Route linking China, Central Asia, the South Caucasus, Türkiye, and the European Union through rail and sea, it added.

Once completed, the project will increase rail freight capacity from about 750,000 tons to 20 million tons per year, eliminating a major bottleneck in the Trans-Caspian Middle Corridor.

“By modernizing and expanding rail connectivity, Türkiye can make progress towards several strategic goals, including boosting local economies and creating jobs in underserved areas, contributing to the country’s objective of becoming a logistics hub and decarbonizing the transport sector,” said Humberto Lopez, World Bank Country Director for Türkiye.

Meanwhile, the Bank announced on Dec. 5 that it had raised close to $24 billion to provide loans and grants for some of the world's poorest nations, which it can leverage to generate a record $100 billion in total spending power.