Luxembourg, 01/10/2004 (Agence Europe) - The European Investment Bank (EIB), the European Union's financing institution, is providing EUR 200 million to the Republic of Turkey for the first fixed rail connection of the European and Asian networks across the Bosphorus Straits. Wolfgang Roth, EIB Vice-President whose special responsibilities include Turkey, signed the relevant agreement today in Ankara, where he met with State Minister for the Economy, Ali Babacan and Minister of Transport, Binali Yildirim. The EUR 200 million is the first loan of a larger facility of up to EUR 650 million approved by the EIB for the tunnel. Wolfgang Roth said: "This is a milestone signature. The Bosphorus tunnel is of crucial importance for the integration of Turkey with the European Union and the development of the Union's transport network. It is not just the largest and most important infrastructure project to be undertaken so far in Turkey, it will also be a stimulus to the Turkish and European economies. It is a good example of the catalytic role the EIB can play in helping to co-finance major infrastructure projects".
In the context of EU's South Eastern Neighbours policy, the tunnel gives to the trans-european rail networks (TENS) access to Asia. It will also reduce air and noise pollution by enabling a major shift from road to rail and alleviating congestion on the road network. Apress statement expalied that "Efficient transport networks are particularly important for countries such as Turkey, whose peripheral location is a challenge for European integration". The communiqué added that the Bank's support for this TEN project "will stimulate economic activity and underlines the key role the EIB is playing in the Union's growth initiative".
Located in Istanbul, the rail link also provides for a long-sought mass transport system for the city's 11 million inhabitants, overcoming a natural barrier cutting the city in two. The project consists in connecting the two railway lines on the Pan-European Transport Corridor IV, presently terminating on either side of the Bosphorus, through a tunnel. The EIB's loan finance will be complemented by funding from the Japanese Bank for International Cooperation (JBIC) and funds of the Republic of Turkey. Along with the two bridges over the Bosphorus, which provide for road connections across the Straits, and of which the first one has benefited from an EIB loan back in 1969, the tunnel will be a gateway for international links of European importance.