Mobility

Izmir secures EUR 80 million loan for EUR 250 million investment in low-carbon metro

Photo: Pixabay

Published

September 14, 2018

Country

Comments

0

Share

Published:

September 14, 2018

Country:

Comments:

0

Share

Izmir, Turkey’s third-largest city with a population of close to 4.2 million, has secured a EUR 80 million loan from the European Bank for Reconstruction and Development (EBRD) for a EUR 250 million project to build its second metro line.

Metro development in Izmir represents a major investment in zero-emission transport at the local level. The project will contribute to sustainable transport through providing an alternative solution to the use of buses, minibuses, taxis, and private vehicles, significantly contributing to the reduction of air pollutants and greenhouse gas (GHG) emissions, according to the EBRD’s website.

With a growing population of over four million people and a booming tourism industry, Izmir, on Turkey’s Aegean coast, is in ever-growing need of better public transport that will provide a viable alternative to polluting car travel on the city’s congested roads, the EBRD said in a news release.

The 7.2-kilometer metro line around the city’s east-west corridor will improve the connection between a university campus, a hospital, and retail areas, extend the existing 19-kilometer line and link up with bus, suburban rail and tram networks.

The EBRD’s EUR 80 million loan to the city will be part of a EUR 210 million financing package expected to be co-financed by parallel lenders, while the remaining EUR 40 million for the project to build Izmir’s second metro line will be provided from the city’s budget, according to the EBRD’s website.

The EBRD has previously provided EUR 23.5 million financing for 85 new vehicles for the Izmir metro system and extended a EUR 33 million loan for three new car ferries, another environmentally friendly alternative to the city’s busy roads.

This new financing is part of the EBRD’s Green Cities program, which builds on the Bank’s two decades of experience investing in municipal and environmental infrastructure.

Under this program, the EBRD will help Izmir develop a Green City Action Plan (GCAP), which will aim to reduce emissions from public transport by over 15% and address the city’s needs for sustainable growth, according to the press release.

The EBRD has invested nearly EUR 11 billion in various sectors of the Turkish economy since 2009. Half of the Bank’s portfolio in Turkey constitutes investments that promote sustainable energy and resource use, according to the news release.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

vulcan lithium Landau Zero Carbon Lithium Project

Vulcan opens Europe’s first fully domestic lithium production plant in Germany

30 November 2023 - Lithium extraction from salt water has a much lower environmental impact than projects at salt deserts and mines

Southeastern European countries gsci rank sustainable competitiveness

Here’s how Southeastern European countries rank in sustainable competitiveness

18 November 2023 - Scandinavian countries are ranked the highest in GSCI, but even they have a long way to go to becoming truly sustainable and competitive

Rio Tinto files nine lawsuits against Serbia

Rio Tinto filed nine lawsuits against Serbia

15 November 2023 - Rio Tinto’s Serbian subsidiary Rio Sava has submitted nine lawsuits against the Government of Serbia over the suspension of the Jadar project

cbam transitional phase western balkans turkey

CBAM transitional period: What it means for exporters to EU and how they can meet requirements

15 November 2023 - To get a better picture of what lies ahead for exporters to the EU, we have talked to lawyers and energy experts