KfW IPEX-Bank provides financing for Hassa-Dörtyol Tunnel in Türkiye

• Total financing volume EUR 1,548 million
• Hassa-Dörtyol Railway and Highway Tunnel of high strategic importance for the economy of the region
• Will benefit an area impacted by the earthquake in 2023

KfW IPEX-Bank contributes EUR 200 million to the financing of the construction of the Hassa-Dörtyol Railway and Highway Tunnel in Türkiye. The contribution includes a tranche covered by the Swedish Export Credit Agency EKN well as a commercial tranche supported by credit insurance from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). KfW IPEX-Bank acts as Mandated Lead Arranger alongside seven international banks, with Société Generale acting as Coordinator for the EUR 1,548 million financing.

“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”, says Aida Welker, Member of the Management Board of KfW IPEX-Bank.

The 25 km railway and highway tunnel will connect the towns Dörtyol and Hassa in Hatay province. It is of high strategic importance as it allows for a direct connection between the industrial centres in southeastern Anatolia to the major port of Iskenderun on the Eastern Mediterranean Sea. This will significantly reduce transport times for cargo and passengers and reduce CO2 emissions as traffic by rail and road will be able to avoid a major detour around the Nur Mountains. In addition, this new tunnel will benefit the regions severely impacted by the earthquake in 2023 and it establishes an earthquake-resistant road and railway transportation infrastructure. A significant amount of the supplies for the construction will be provided by European companies.

The project will be implemented by a joint venture of the EPCs Doğuş İnşaat ve Ticaret A.Ş and Eze İnşaat A.Ş. The owner of the project will be AYGM, the General Directorate of Infrastructure Investments of the Ministry of Transport and Infrastructure of the Republic of Türkiye, while the Ministry of Treasury and Finance of the Republic of Türkiye will act as borrower.

With this financing, KfW IPEX-Bank supports modern and safe transport infrastructure in Türkiye and contributes to decarbonising traffic.