Turkey’s Hassa-Dörtyol Tunnel: KfW IPEX Financing Details

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Introduction

KfW IPEX-Bank is providing €200 million in financing for the Hassa-Dörtyol rail and road tunnel project in Turkey, which is part of a larger financing package coordinated by Société Générale totaling almost €1.55 billion.

Financing Details

KfW IPEX-Bank is contributing €200 million to the Hassa-Dörtyol rail and road tunnel’s financing. This includes one tranche covered by the Swedish export credit agency EKN and a commercial tranche secured by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). KfW IPEX-Bank is acting as Mandated Lead Arranger alongside seven international banks. Société Générale is coordinating the financing, which totals almost €1.55 billion.

Project Overview

The 25-km Hassa-Dörtyol rail and road tunnel will connect Dörtyol and Hassa in Hatay province. This project is considered strategically important as it provides a direct link between industrial hubs in southeastern Anatolia and the port of Iskenderun on the eastern Mediterranean.

Strategic Benefits

The tunnel is expected to reduce transport times for both freight and passengers. It will also lower CO₂ emissions by eliminating a major detour around the Nur Mountains. Furthermore, the tunnel aims to establish earthquake-resistant road and rail infrastructure, benefiting regions impacted by the 2023 earthquake. A significant portion of the construction materials and equipment will be supplied by European companies.

Project Execution

The project is being executed by a joint venture of EPC contractors Doğuş İnşaat ve Ticaret and Eze İnşaat. AYGM, the General Directorate of Infrastructure Investments at the Ministry of Transport and Infrastructure of the Republic of Turkey, owns the project, with the Republic of Turkey’s Ministry of Finance acting as the borrower.

Conclusion

The Hassa-Dörtyol rail and road tunnel project in Turkey is being financed with KfW IPEX-Bank contributing €200 million. The project, coordinated by Société Générale, will improve transport efficiency and resilience in the region.

Company Summary

KfW IPEX-Bank: A financial institution contributing €200 million to the Hassa-Dörtyol rail and road tunnel project.

Société Générale: The coordinating bank for the financing of the Hassa-Dörtyol rail and road tunnel, which totals almost €1.55 billion.

EKN: The Swedish export credit agency covering one tranche of the KfW IPEX-Bank financing.

ICIEC: The Islamic Corporation for the Insurance of Investment and Export Credit, which secured a commercial tranche of the KfW IPEX-Bank financing.

Doğuş İnşaat ve Ticaret: An EPC contractor involved in the Hassa-Dörtyol rail and road tunnel project.

Eze İnşaat: An EPC contractor involved in the Hassa-Dörtyol rail and road tunnel project.

AYGM: The General Directorate of Infrastructure Investments at the Ministry of Transport and Infrastructure of the Republic of Turkey, which owns the Hassa-Dörtyol rail and road tunnel project.

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