Newsletters
Türkiye has secured €350 million ($407.56 million) in financing from the Asian Infrastructure Investment Bank (AIIB) to modernize and maintain its railway infrastructure, aiming to reduce its carbon footprint and align with European Union climate regulations, according to the Treasury and Finance Ministry.
The funding will be used under the Turkish State Railways (TCDD) Railway Maintenance Modernization Project and is intended for the construction of new lines, the upgrade of existing tracks, and the procurement of advanced high-capacity equipment for measurement, monitoring, and maintenance operations.
According to information obtained by the state-run Anadolu Agency, Türkiye’s total external financing for project development in 2025 has now exceeded $15 billion, with more than $5 billion of that amount allocated specifically to transport infrastructure.
Including the TCDD loan, Türkiye has received a total of $800 million in financing from the AIIB so far this year through arrangements facilitated by the Treasury and Finance Ministry.
Treasury and Finance Minister Mehmet Simsek said the government’s infrastructure strategy is closely tied to its broader economic and environmental goals. He emphasized that investing in rail will improve Türkiye’s trade logistics, tourism access, and regional development.
Simsek also noted that enhancing railway infrastructure is expected to boost Türkiye’s global competitiveness while helping reduce the country's carbon footprint. The investments are in line with Türkiye’s efforts to align with the European Union’s Carbon Border Adjustment Mechanism, which imposes environmental compliance standards on imports into the EU market.
"We continue to work closely with international financial institutions, and the confidence in our program remains strong," Simsek said, emphasizing the continued efforts to secure concessional external financing.
1 min read
1 min read
