World Bank Approves $660 Million Financing for Turkey’s Key Railway Upgrade

Finance

The World Bank has approved a $660 million loan to support the Eastern Turkey Middle Corridor Railway Development Project, a vital infrastructure initiative aimed at upgrading a 660-kilometer railway line that stretches from Divriği to Kars in eastern Turkey. This significant investment is part of the World Bank’s ongoing efforts to support Turkey’s transportation sector and promote economic development in its regional areas.

Enhancing Regional Connectivity and Economic Growth

The upgrade of the Divriği-Kars railway line is expected to significantly improve transportation efficiency in one of Turkey’s most strategic regions. Once completed, the project will modernize rail infrastructure, increase the speed and safety of trains, and provide a more sustainable alternative to road transport. This will be especially beneficial for the movement of goods and passengers between eastern Turkey and the broader regional and international markets, enhancing trade links with neighboring countries.

In a statement, the World Bank emphasized the importance of the project:
“The Eastern Turkey Middle Corridor Railway Development Project is a critical step in strengthening regional connectivity, boosting trade, and promoting economic development. This project will help modernize Turkey’s transport infrastructure, facilitating the movement of goods and improving access to key markets.”

Sustainable Development and Environmental Considerations

The project aligns with Turkey’s long-term goals of sustainable infrastructure development and environmental sustainability. By focusing on rail transport—an environmentally cleaner alternative to road and air transport—the project contributes to reducing carbon emissions and supporting Turkey’s commitment to addressing climate change. Furthermore, the upgrade aims to improve safety standards, reducing the risks associated with older infrastructure.

The World Bank loan will finance the renovation of track beds, the installation of modern signaling systems, and the construction of new stations. These improvements are designed to enhance both the safety and capacity of the railway, helping to accommodate growing demand for freight and passenger services in the region.

Strategic Importance for Turkey

The upgraded railway line is part of Turkey’s broader strategy to strengthen its transportation and logistics infrastructure, especially in eastern regions, which are often less developed than the country’s western areas. By improving connectivity between Divriği, Kars, and key trade hubs, the project will open up new opportunities for economic growth, regional development, and job creation, particularly in sectors related to construction, logistics, and tourism.

In addition to improving domestic transport efficiency, the railway project is part of a wider regional initiative that seeks to enhance Turkey’s role as a key transit hub between Europe and Asia. The improved rail infrastructure will complement other ongoing projects, such as the modernization of Turkey’s national highway network and ongoing airport developments, boosting Turkey’s position as a major trade corridor.

World Bank’s Commitment to Turkey

This $660 million loan reflects the World Bank’s continued support for Turkey’s economic development. The World Bank has been a long-time partner in the country, providing funding for various large-scale projects in transportation, energy, and urban development. This project is in line with the Bank’s broader efforts to foster sustainable economic growth, reduce poverty, and enhance infrastructure in developing regions.

By upgrading critical transport infrastructure, the Eastern Turkey Middle Corridor Railway Development Project is set to improve Turkey’s connectivity, economic competitiveness, and sustainability for years to come, contributing significantly to the country’s development objectives and its regional and international trade ambitions.

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