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China Eximbank provides $720 million of debt financing for Phase II of the Ankara-Istanbul High Speed Rail Project
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Turkey |
| Country | Turkey |
| Start Date | Jul 17, 2007 |
| End Date | Jan 13, 2026 |
| Duration | 6,755 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 41428 |
Grant Description
China Eximbank provides $720 million of debt financing for Phase II of the Ankara-Istanbul High Speed Rail Project On July 17, 2007, China Eximbank and the Government of Turkey signed a $500 million preferential buyer’s credit (PBC) agreement and a $220 million buyer’s credit loan (BCL) agreement for Phase 2 of Ankara-Istanbul High-Speed Rail Project.
This was the first time that China Eximbank ever offered a “mixed credit” that blended a preferential buyer‘s credit and a non-preferential (commercial) buyer’s credit for a single project.
The weighted average interest rate of the PBC and the BCL was 2.5%; the weighted average maturity of the PBC and the BCL was 20.3333-years; and the weighted average grace period of the PBC and BCL was 4.3333-years. Sinosure provided buyer’s credit insurance. The PBC and BCL entered into force on April 7, 2008.
The proceeds from the PBC and the BCL were to be used by the borrower to partially finance a $1.27 billion commercial contract between Turkish State Railways (TCDD) and a Chinese and Turkish consortium of contractors (consisting of China Railway Construction Corporation, China National Machinery Import and Export Corporation, Cengiz Construction and İbrahim Çeçen İçtas Constructionş), which was signed in November 2006.
This consortium had previously won an EPC+F bid for the same contract on October 13, 2005. The “Turkish Portion” of the total project cost ($550 million) was financed by European Investment Bank.
Phase 2 involved the construction of a 158 km segment from İnönü to Köseköy along the Ankara-Istanbul high-spreed railway.
It was implemented in two sections: a 54km segment from İnönü to Vezirhan and a 104 km segment from Vezirhan to Köseköy. The implementing consortium began construction on the 54 km İnönü-Vezirhan segment on September 22, 2008. It began construction of the 104 km Vezirhan-Köseköy segment on October 21, 2008.
This project was completed on July 25, 2014.
Phases 1 and 3 of the Istanbul to Ankara-Istanbul High-Speed Rail project were undertaken by Spanish and Italian companies. The implementation of all three phases reduced the travel time from Istanbul to Ankara from 10 hours to 3.5 hours.
Staff Comments
- This project is also known as the 58 km İnönü-Köseköy Segment of the Ankara-Istanbul High Speed Rail Project The Turkish project title is Ankara–İstanbul yüksek hızlı demiryolu or Eskişehir-İstanbul hızlı tren projesine. The Chinese project title is 安卡拉-伊斯坦布尔高速铁路 or 安卡拉至伊斯坦布尔高铁二期工程 or 土耳其安伊高铁项目.
- For the time being, AidData has not recorded the PBC and BCL as separate records since the separate borrowing terms of these loans are unknown. AidData relies on the weighted average interest rates, grace periods, and maturities that are recorded in the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=03. Neither the China Eximbank PBC nor the China Eximbank BCL that supported this project are included in the Chinese Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020.
Sources & References
- HIGH-SPEED RAIL WILL SET THE PACE IN TURKEY
- Turkey Ankara-Istanbul high speed railway project undertaken by CMC achieves great progress., 3 Zhao Jun CMC and China High Speed Railway
- China builds Turkish gas facility
- China Exports High-Speed Rail Technology to Turkey
- China's fast track to high-speed rail exports
- Turkey’s new high-speed rail: victory for Erdogan – and China
- The first China-built high-speed rail in Turkey
- Transport thrust
- 中国企业承建土耳其高铁顺利通车
- 高铁海外“零突破”的台前幕后
- 项目险产品服务手册
- High-speed rail overseas 'zero breakthrough' in front and behind the scenes, 【整理】第一个中国高铁工程技术“走出去”项目经验
- Plan for new high-speed rail in Istanbul waiting for approval
- Turkey Ankara-Istanbul high speed railway project undertaken by CMC achieves great progress
- 进出口行优惠出口买方信贷支持中国企业投标
- 进出口银行优惠出口买方信贷支持中国企业投标
- China National Machinery Corporation officially signed a loan agreement for Turkey's Ankara-Istanbul high-speed rail project
- The second phase of the Turkish Ankara-Istanbul high-speed rail project was successfully opened to traffic
- The first high-speed rail built overseas by a Chinese company enters the countdown to opening to traffic
- Export - Import Bank of China Introduction to “Two Concessional” Loan
- Hazine Müsteşarlığı
- Turkey Anyi High-speed Railway-the first Chinese high-speed railway engineering technology 'going out' project
- Government Concessional Loan and Prefferential Buyer's Credit Brochure
- Koordine Ettiği Projeler ve Çin Firmaları İle Katıldığı İhaleler
- FAALİYET RAPORU 2008
- TÜRKİYE-ÇİN İLİŞKİLERİNDE KUŞAK VE YOL GİRİŞİMİ’NİN ÖNEMİ
- 中国海外承建首条高铁在土耳其通车
- Cengiz İnşaat Yönetim Kurulu Başkanı Mehmet Cengiz
- Yüksek Hızlı Tren Projesine ilişkin olarak kendisi ve ortağı olduğu şirketine yönelik iddialarla ilgili açıklama yaptı.
- Istanbul-Ankara Railway
- Ankara-Istanbul High Speed Railway Construction
- Ankara-Istanbul high-speed train line project
- Hızlı tren için Çin kredisi tamam, ÇİN ÜLKE RAPORU
- 看中国铁建如何克服“走出去”的水土不服
- 我国首个海外高铁建设项目顺利通车
- 迄今中国在海外唯一实施的高铁项目，于2014年盛夏在土耳其通车
- ENVIRONMENTAL IMPACT ASSESSMENT NON-TECHNICAL SUMMARY
- 一带一路重大项目巡礼
- Introduction of CMC
- China's Overseas Development Finance
- DRS Official Commitments from China Through 2021
- IDS_Average interest on new external debt commitments
- IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
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Government of Turkey
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