Islamic Development Bank loans $800m for Turkey rail project

The Islamic Development Bank Group (IDB) board has approved investments worth $2.8 billion across projects in multiple countries, including Turkey.

The Jeddah-based lender will provide €660 million ($765 million) for the Istanbul North Rail Crossing (Inrail) project to support intercontinental rail connectivity, enabling freight and passenger movement between Europe and Asia.

In April, Ankara secured €1.7 billion from the World Bank for Inrail, which involves the construction of a 127km electrified, high-capacity railway crossing the Bosphorus Strait and connecting Istanbul’s two airports, bypassing the city’s metropolitan area.

The government also secured about $6.75 billion from six international financial institutions in February to help fund the railway project.

Financing of €650.75 million was approved for Uganda to construct a standard-gauge railway (Malaba–Kampala) project, which will lower transport costs, cut carbon emissions and generate 3,000 jobs.

Another $94 million was allocated to Tajikistan to rehabilitate the Rushan-Varshez road to improve regional trade connectivity.

A $22 million financing package was granted to Palestine to support solar power plants and improve energy security.

IDB is a multilateral development finance institution set up by the Organisation of Islamic Cooperation in 1973. It has since grown to include 57 member states, with Saudi Arabia as its largest shareholder.

Further reading:

• Saudi Arabia and Turkey to explore rail network expansion
• Turkey plans to extend Hejaz railway to Oman
• Syria gets $200m from World Bank to upgrade rail network