- EBRD investment in key road infrastructure in Istanbul
- New motorway section will increase connectivity and reduce travel time
- Multinational private investor consortium with a strong build-operate-transfer background will support the project
The European Bank for Reconstruction and Development (EBRD) is providing an A/B loan of €240 million to Türkiye’s Nakkas Otoyol Yatirim ve Isletme, to finance the construction of the final section of the North Marmara Motorway (NMM) programme under a build-operate-transfer (BOT) model.
The debt financing package includes, among other parallel loan facilities, an A-loan of €195 million for the EBRD’s own account and a B-loan of €45 million syndicated to Bank of China.
The €1.4 billion project marks the first road BOT project in the country that is fully structured with the involvement of international financiers. The project is backed by an experienced private investor consortium led by Ronesans Holding from Türkiye, and involving South Korean investors Samsung C&T Corporation, Korea Overseas Infrastructure and Urban Development Corporation (KIND) and KIAMCO PIS Infra Special Asset Investment Trust.
A powerhouse of 15 million residents, Istanbul has long struggled with traffic bottlenecks and strained road infrastructure. It is one of the most congested cities in the region, with its residents estimated to spend more than nine days per year in rush-hour congestion.
When completed, the motorway will bring significant savings for users in terms of travel time, and will contribute to economic activity by connecting industrial zones in the region. The project will also facilitate connections between the wider NMM network and existing roads along the east-west corridors in Istanbul.
Elisabetta Falcetti, EBRD Managing Director for Türkiye and the Caucasus, said: “We are very proud to take part in this crucial project for Türkiye. By alleviating some of the pressure on the infrastructure network, the motorway will improve quality of life for the city’s residents, provide enhanced connectivity to the wider region and facilitate economic progress. Supporting the private sector and public-private partnerships is at the core of the EBRD’s country strategy for Türkiye and I am pleased to witness the signing of this important project after years of preparation.”
The EBRD is among Türkiye’s key investors, with more than €20 billion committed through 455 projects and trade finance limits since 2009, most of it in the private sector.
