BREAKING NEWS

IFC Supports New Tramway in Antalya to Strengthen Public Transit in Turkey

IFC, a member of the World Bank Group, is helping finance a new tram line in Antalya, Turkey’s fifth-largest urban center, part of an effort to help municipal authorities improve public transport and build a sustainable city. 

IFC will provide Antalya with a €140 million financing package, helping the city add 18 kilometers of track and 29 stations to its urban rail transit system. Antalya currently has 30 km of tram lines. The expansion of the network will connect the northern suburbs of Varsak and Muze to the city center.   

The financing will also help the municipality buy 20 new tram cars. IFC is providing an €80 million loan from its own account and mobilizing a €60 million loan from IFC’s Managed Co-Lending Portfolio Program, which allows institutional investors to passively participate in IFC’s lending program. IFC also advised the municipality, through its Europe and Central Asia Cities Platform, on financing options and safety standards.

Menderes Turel, the Mayor of Antalya said: “The commitment of IFC is a sign of confidence in our city. With IFC we have developed the most suitable financing model and we will develop Antalya’s rail transport system to become the second largest in Turkey, following Istanbul. Antalya will continue to grow in a sustainable and planned way.” 

Antalya is Turkey’s main tourist destination, receiving around 30 percent of the country’s visitors. With 2.3 million people, it contributes about 3 percent of Turkey’s GDP and is one of the fastest growing cities in the country. The new tram line is expected to carry an additional 25 million passengers every year, significantly improving urban mobility and helping reduce traffic congestion in the city. 

“Fast-expanding cities like Antalya are driving economic growth across the developing world.” Wiebke Schloemer, IFC’s Regional Industry Head of Infrastructure in Europe, Middle East and North Africa. For them to keep growing, they need continue to beef up urban infrastructure in a cost-effective and eco-friendly way. And that’s exactly what public transit does.” 

Globally, over the past decade, IFC has provided more than $10 billion in financing for 300 urban infrastructure projects and provided advisory services to cities in more than 60 countries. World Bank Group’s strategy in Turkey is to step up support to local governments by providing access to long-term financing and helping implement urban infrastructure projects that contribute to a sustainable growth of cities. Turkish cities including Izmir, Istanbul, and Antalya are among the 10 cities globally, where IFC established strategic relationships to expand this work. 

Turkey is IFC’s second-largest investment destination; the institution $5.9 billion invested in the country. In fiscal year 2017, which ended in June, IFC made $1.2 billion in long-term investments in Turkey’s private sector and provided over $700 million in trade finance. 

About IFC 
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org 

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