ASIATODAY.ID, MANILA — The Asian Development Bank (ADB) has approved a €645.83 million ($750 million equivalent) loan to help finance the construction of a 127-kilometer (km) greenfield railway line in Türkiye, advancing the country’s role as a vital transport and logistics hub linking Europe and Asia through more competitive, reliable, and cost-effective rail infrastructure.
The Istanbul North Rail Crossing Project—cofinanced under the ADB–World Bank Full Mutual Reliance Framework (FMRF)—will bypass the Istanbul metropolitan area and provide a high-capacity overland rail link across the Strait of Istanbul. The line will help drive economic growth, enable private investment, generate jobs, and improve the resilience of Türkiye’s logistics corridors to natural hazards.
“This flagship rail project will reinforce Türkiye’s strategic role as a key link between Asia and Europe by providing faster, high-capacity, and more reliable movement of freight. The project will also connect the country’s two main airports to the rail network,” said ADB Director General for Central and West Asia Leah Gutierrez on June 9, 2026.
“The collaboration of several international financial institutions will maximize its development impact and efficiency, with ADB bringing its deep knowledge of complex transport projects and strategic understanding of Asia and the Pacific.”
By bypassing central Istanbul, the railway line will relieve a supply chain bottleneck on a double tracked and electrified route designed to carry passengers and freight. The project is expected to benefit private cargo carriers, logistics service providers, and general passengers through improved mobility and access to sustainable transport.
The FMRF is an innovative cofinancing arrangement between ADB and the World Bank designed to streamline project preparation, reduce duplication, and deliver faster and more effective development support.
ADB’s assistance is the first of two loans for the Istanbul North Rail Crossing Project, with the second loan for the same amount anticipated for consideration in 2028.
In addition to financing from ADB and the World Bank, the project is expected to receive cofinancing from the Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, Islamic Development Bank, and Organization of the Petroleum Exporting Countries Fund for International Development. The total project cost is expected to be $8.27 billion.
The project is aligned with ADB’s interim country partnership strategy for Türkiye, 2025–2027, which focuses on resilience and regional connectivity, as well as the country’s Twelfth Development Plan (2024–2028) and the Transport and Logistics Master Plan to increase the share of railway transport.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region. (AT Network)
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