The British government has announced that it will guarantee a loan of 2.1 billion euros to finance the 503-kilometer Ankara-Izmir electrified high-speed line in Turkey. The financing, led by Credit Suisse and Standard Chartered, will be secured by UK Export Finance (UKEF) through its Buyer's Credit Scheme. Financing complies with internationally recognized sustainability standards and in line with green lending principles. International export credit agencies such as Italy's SACE, Switzerland's SERV and Austria's OeKB also provide reinsurance, reducing risk to UK taxpayers.

The 250 km/h line will travel from the capital to the port city via Afyonkarahisar, Kutahiya, Usak and Manisa. The funding is Turkey's first British-backed rail deal in more than 160 years.

The line construction is divided into four sections: Polatli (just south of the boundary between the Ankara-Istanbul and Ankara-Konya high-speed lines) - Afyonkarahisar; Afyonkarahisar - Banaz (Usak); Banaz (Usak) - Salihli, and Salihli-Menemen. Construction of the 151.2km Polatli-Afyonkarahisar section started in 2013 but was suspended in 2018. Three sister companies ERG International, ERGInsaat Ticaretve Sanayi and SSB's ERGJV were awarded the contract to complete Part 1 of the incomplete infrastructure works including superstructure, electrification and signaling.

The financing deal will secure the UK company's main contract to supply the project, with several deals worth hundreds of millions of pounds reportedly close to agreement. The UK company is expected to supply tracks, switches, point machinery, fasteners, materials and equipment for signaling, telecommunications and electrification systems, as well as insurance and freight services.

From the fourth quarter of 2020 to the third quarter of 2021, the bilateral trade relationship between Turkey and the UK is worth £17.5 billion. "Turkey is an important trading partner for the UK," said Ms Anne-Marie Trevelyan, UK Secretary of State for International Trade. “Our shared global vision for free trade and the environment is the driver of economic growth in both our countries. It is fitting that the UK Export Finance’s largest ever civil infrastructure deal has strong sustainability. Said it was a proud moment to use its industrial roots to reduce emissions in a polluting city."

"With reference to the bilateral cooperation agreement signed between the UK and Turkey in 1999; under the green loan structure, we have successfully completed the landmark financing of the Ankara-Izmir high-speed rail project," said Dr Nureddin Nebati, Turkey's Minister of Finance and Finance . “We have placed a lot of emphasis on environmental and social procedures in this project, and as the Ministry of Finance and Treasury, we are closely monitoring the improvement of these issues. We also want to be one of the active and important players in the fast-growing green finance market.” Key Words: Engineering Construction, Engineering News

The announcement was welcomed by the Rail Industry Association (RIA), which ERG International UK approached in October to provide support to better understand the UK's industrial capacity to provide superstructure, electrification and signalling. The RIA said it connected the ERG with its members and senior staff from industry companies who they believed had met their initial requirements.Editor/XingWentao