KfW IPEX-Bank is providing EUR 200 million in financing for the construction of the Hassa-Dörtyol Railway and Highway Tunnel in Türkiye. The total financing volume for the project is EUR 1,548 million. KfW IPEX-Bank’s contribution includes a tranche covered by the Swedish Export Credit Agency (EKN) as well as a commercial tranche supported by credit insurance from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). The bank acts as Mandated Lead Arranger alongside seven international banks, with Société Generale serving as Coordinator.
Aida Welker, Member of the Management Board of KfW IPEX-Bank, said: “With this transaction, we not only underline our expertise in financing sustainable railway infrastructure projects as well as in export finance but also support efforts to increase the region’s resilience to major seismic events.”
The planned tunnel will be 25 kilometers long and connect Dörtyol and Hassa in Hatay province. It aims to provide a direct link between industrial centers in southeastern Anatolia and the port of Iskenderun on the Eastern Mediterranean Sea. The project is expected to reduce transport times for both cargo and passengers, while also lowering CO2 emissions by allowing traffic to avoid a significant detour around the Nur Mountains. This infrastructure will benefit regions affected by the 2023 earthquake through its earthquake-resistant design. Many supplies needed for construction will come from European companies.
The tunnel project will be carried out by a joint venture between Doğuş İnşaat ve Ticaret A.Ş and Eze İnşaat A.Ş., with AYGM—the General Directorate of Infrastructure Investments under Türkiye's Ministry of Transport and Infrastructure—acting as owner. The Ministry of Treasury and Finance of Türkiye will be the borrower.
By supporting this project, KfW IPEX-Bank aims to help modernize transportation infrastructure in Türkiye and contribute to reducing carbon emissions from traffic.