Ankara, Türkiye, 5 November 2024 – The Islamic Development Bank (IsDB) Group has signed a €246.4 million financing agreement with Türkiye’s Ministry of Treasury and Finance to support the modernization of the 660 km Eastern Türkiye Middle Corridor (ETMIC) Railway. This strategic railway project will connect Sivas Province to the Georgian border via Kars, enhancing Türkiye's role as a central trade corridor between Asia and Europe and advancing the country’s commitment to sustainable development and climate mitigation.

The agreement was formalized in Ankara by H.E. Mr. Osman Çelik, Deputy Minister of Treasury and Finance, and Dr. Walid Abdelwahab, Director of the IsDB Group Regional Hub Türkiye (RHT). The signing ceremony was witnessed by Türkiye’s Minister of Treasury and Finance, H.E. Dr. Mehmet Şimşek (IsDB Governor), and IsDB Group Chairman, H.E. Dr. Muhammad Al Jasser, underscoring the strong cooperation between IsDB and Türkiye.

Witnessing the signing ceremony, H.E. Mr. Mehmet Şimşek, the Minister of Treasury and Finance of the Republic of Türkiye, stated: “This project will enable us to modernize and improve our railway infrastructure, which leans towards competitiveness and decarbonization. The project focuses on improving logistics efficiency and strengthening the operational resilience of our railway system. We are grateful for the IsDB’s support and believe that our successful partnership with the IsDB group will continue in the future.”

IsDB Group Chairman, H.E. Dr. Muhammad Al Jasser, who also witnessed the event, expressed pleasure over the signing of the financing agreement saying: “IsDB is proud to support Türkiye’s role as a key trade hub connecting Asia and Europe. This project will boost economic integration, enhance regional connectivity, and support Türkiye’s climate commitments. We are committed to seeing it delivered swiftly with our partners' support.”

The project serves as a crucial link in potential trade corridors between Europe and Asia and enhances regional integration. Moreover, decarbonizing freight transport is identified as a key strategy supporting the country’s 2053 net-zero target, offering not only environmental benefits, but also addressing complementary objectives such as reducing transport costs, road congestion, accidents, and fatalities. This aligns with Türkiye's commitment to the Paris Agreement and supports international initiatives like the EU's Green Deal. This strategic regional railway project is cofinancing with the World Bank and the Asian Infrastructure Investment Bank (AIIB).

Türkiye is a founding member of the Islamic Development Bank (IsDB). Since 1974 to date, the IsDB Group has approved more than US$ 13.6 billion in financing through over 560 projects in Türkiye’s different socio-economic sectors, including health, green and highspeed transport, renewable energy production, education, agriculture, international trade, private sector development, as well as insurance coverage for exports and investment.