Strengthening UK-Turkey Business Ties: £680m UKEF Loan Boosts High-Speed Railway Project

UK Export Finance (UKEF), the UK's distinguished export credit agency, has ratified an €781m ($867m) loan, roughly £680m. This pivotal move propels Rönesans Holding, a leading construction firm, to finish a groundbreaking high-speed electrified railway in Turkey.

Linking Mersin with Adana, Osmaniye, and Gaziantep, this eco-friendly transport system bridges Turkey's second-largest container port with distant inland cities, spanning over 150 miles. By bringing this rail project to fruition, a massive reduction in CO2e emissions by over 150,000 tonnes annually is expected.

This significant UK-Turkey venture paves the way for UK rail sector suppliers to secure lucrative export contracts. It promises to strengthen the UK's infrastructure, engineering, and project management sectors, supporting the Prime Minister's economic expansion goals.

Lord Offord, Minister for Exports, lauded the flourishing UK-Turkey trading relationship. With UK exports to Turkey surpassing £8.5 billion last year, and an updated trade deal in the offing, this project represents the UK's continuous commitment to export railroad innovation and expertise.

UKEF's hefty backing of the electrified railway project mirrors the UK's dedication to stimulate economic growth. Rönesans Holding is already in negotiations with UK suppliers for essential project elements like electronic infrastructure, ESG consultancy services, catenary, and mechanical components.

This landmark UK-Turkey deal for rail infrastructure is a result of UKEF's effective collaboration with renowned financial institutions, J.P. Morgan, ING Bank, and BNP Paribas. Export finance insurance was further fortified by SACE and OeKB, the Italian and Austrian export credit agencies.

In Dr. Erman Ilıcak, President of Rönesans Holding's words, this venture embodies a "paradigm shift in Turkish rail construction." The new electrified line offers a greener alternative to the diesel-dependent railway route, aligning with global sustainability goals.

Forecasts indicate a drop of 157,000 tonnes in CO2e emissions during the completed route's first year. The project will also help Turkey reach its ambitious target of extending high-speed railway coverage to 10,000km.

A significant infrastructural development, the high-speed railway reduces the travel time between Gaziantep and Mersin by four hours. The project is vital for improving rail connectivity, creating a sustainable transport system, and fostering economic and social integration in Turkey.

This UK-Turkey collaboration showcases the resilience and the commitment of both nations towards sustainable development, even as they recover from the devastating 2023 earthquake. The project is a beacon of hope for a greener, interconnected future.