Turkey: AIIB Signs up to $1.5bn Financing for Istanbul North Rail Crossing
The Asian Infrastructure Investment Bank (AIIB) and the Republic of Türkiye have signed the first phase of AIIB financing of up to $1.5bn for the Istanbul North Rail Crossing Project (INRAIL), AIIB said on 21 July from Beijing.
AIIB said the package supports construction of a new high-capacity rail corridor linking the European and Asian sides of Istanbul via the Yavuz Sultan Selim Bridge. The bank said the project tackles one of Türkiye’s most critical intercontinental rail bottlenecks by expanding cross-Istanbul rail capacity, improving freight and passenger efficiency, and accelerating a shift from road to rail.
On completion, AIIB said INRAIL will deliver approximately 127 kilometers of double-track, electrified and fully signalized railway connecting Çayırova on Istanbul’s Asian side with Çatalca on the European side. The line will support passenger services at speeds of up to 160 km/h and freight services at 80–120 km/h. AIIB said it will also create seamless connectivity between Istanbul Airport, Sabiha Gökçen Airport and Türkiye’s high-speed rail network.
AIIB said INRAIL complements the existing Marmaray corridor and enables separation of freight and passenger operations. Rail freight travel time between Çayırova and Çatalca is expected to fall from around 13 hours to 3.6 hours. Passenger travel time between the two airports by public transport is expected to be nearly halved, from around 120 minutes to 65 minutes.
Total project cost is approximately $8.27bn, AIIB said, calling INRAIL among its largest transport investments in Türkiye. AIIB is co-financing the project alongside the World Bank, the Asian Development Bank, the Islamic Development Bank, the European Bank for Reconstruction and Development and the OPEC Fund for International Development.
AIIB said INRAIL is projected to reduce greenhouse gas emissions by approximately 16 million tonnes of carbon dioxide equivalent over its operating period. AIIB financing will contribute primarily to climate mitigation, with additional adaptation benefits through enhanced infrastructure resilience, the bank said.
Konstantin Limitovskiy, AIIB Chief Investment Officer, Region 2, said: “The Istanbul North Rail Crossing Project represents a strategic investment in Türkiye’s transport future and one of AIIB’s most significant connectivity operations to date.” Kerem Dönmez, Director General of Foreign Economic Relations at the Ministry of Treasury and Finance, said: “This financing reflects the confidence of our international development partners in Türkiye’s economic fundamentals and project implementation capacity.” Dönmez also said the project will strengthen Middle Corridor competitiveness, enhance logistics efficiency and support greener transport.