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Overview

ICBC provides EUR 20 million working capital loan to ERG İnşaat A.Ş. for Ankara-Izmir High-Speed Railway Project

Commitments (Constant USD, 2023)$21,697,450
Commitment Year2021Country of ActivityTurkeyDirect Recipient Country of IncorporationTurkeySectorTransport And StorageFlow TypeLoan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2021
Start (actual)
Aug 30, 2022

Geospatial footprint

Map overview

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The purpose of the project is to construct a 503.2 km high-speed rail connecting Ankara, the capital of Turkey to Izmir, the third largest city. More detailed locational information can be found at https://www.openstreetmap.org/relation/12764738#map=11/38.8290/30.2547

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • ERG İnşaat Ticaret ve Sanayi A.Ş.

Implementing agencies

Private Sector

  • ERG İnşaat Ticaret ve Sanayi A.Ş.

Loan desecription

ICBC provides EUR 20 million working capital loan to ERG İnşaat A.Ş. for Ankara-Izmir High-Speed Railway Project

Interest typeUnknown

Narrative

Full Description

Project narrative

During the first quarter of 2021, the Industrial and Commercial Bank of China (ICBC) issued an EUR 20 million working capital loan to ERG İnşaat Ticaret ve Sanayi Anonim Şirketi (ERG İnşaat A.Ş.) — a Turkish company — to support its involvement in the Ankara-Izmir High-Speed Railway Project. The purpose of the project is to construct a 503.2 km high-speed rail connecting Ankara, the capital of Turkey to Izmir, the third largest city. The project is part of Turkey's masterplan to develop a 10,000 km network of high-speed rail lines by 2023. The project is expected to alleviate traffic congestion and reduce CO2 emissions by providing an alternative to current air and road routes, which resulted in the financial transaction being classified as a ‘green loan’ under LMA’s Green Loan Principles. Ankara-Izmir YHT Yapımı Is Ortaklıgı (a consortium involving ERG International UK, ERG İnşaat Ticaret ve Sanayi Anonim Şirketi, and SSB Sauerwein & Schaefert) is the EPC contractor responsible for the implementation in the Ankara-Izmir High-Speed Railway Project. The project’s groundbreaking ceremony took place on August 30, 2022.