With financing provided through UKEF’s Buyer Credit Facility, Rönesans Holding will finish construction of the Mersin-Adana-Gaziantep High Speed Railway on behalf of the Turkish Ministry of Transport.
The deal is expected to create new, multimillion-pound export contract opportunities for the UK’s infrastructure, engineering, and project management sectors, supporting the Prime Minister’s priority of growing the UK economy.
This signals key future opportunities for UK exporters, with Rönesans Holding – one of Europe’s ten largest construction companies – intending to use the high-speed rail project to build its wider relationships with the UK supply chain.
UKEF’s backing – which has been given on the condition that UK exporters supply to the project – will support continued economic growth in the UK, in line with the government’s priorities; Rönesans Holding has already engaged with UK suppliers to negotiate contracts for electronic infrastructure, ESG consultancy services, catenary and mechanical components.
UKEF worked in partnership with JP Morgan, ING Bank and BNP Paribas, who provided the loan, as well as SACE and OeKB – the Italian and Austrian export credit agencies providing reinsurance – to secure this landmark deal for Turkish rail infrastructure.
Dr Erman Ilıcak, president of Rönesans Holding, said, “By upgrading the existing railway line to a high standard railway line, we will be actively reducing negative environmental impact while offering a lower-carbon travel alternative and significantly enhancing the region’s industrial connectivity and trade. Rönesans Holding takes immense pride in contributing to Turkey’s national environmental goals and infrastructure advancement.
“Our fruitful collaboration with British Exporters has secured €781m in financing for the transformative high-speed electrified railway in southern Turkey, adding tremendous value to the cooperation between Türkiye and UK exports and services while paving the way for exciting global partnerships,” added Ilıcak.
In replacing the current railway, which relies on diesel locomotives, the electrified line will provide a lower-carbon alternative to existing routes between Mersin and Gaziantep. Project forecasts suggest that the completed route will save 157,000 tons in CO2e emissions in its first year alone.
The UKEF-backed project will also contribute directly to Turkey’s objective of increasing high-speed railway coverage to 10,000km, by creating a rail link greater than the distance between Cardiff and London.
Able to carry trains travelling up to 200 km/h, this transport link is a major step forwards for regional infrastructure and growth. The high-speed railway will reduce the travel time from Gaziantep – via regional cities Adana and Osmaniye – to Mersin by four hours; Mersin is the second largest container port in the country and a thriving city of over one million people.
Gaziantep, the railway’s eastern terminus, was near the epicenter of the 7.8 magnitude earthquake which struck Turkey in February 2023. The UKEF-backed project for completing this railway will also contribute to reconstruction in Gaziantep, Osmaniye and other areas of southern Turkey severely damaged in this disaster.