|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary covers an investment by WestLB of Germany in the Otogar-Bağcılar-Ikitelli-Olimpic Village Metro Project in Turkey. MIGA is proposing to insure up to $20 million for a period of up to three years against the risk of non-honoring of sovereign financial obligations.
MIGA proposes to cover a guarantee by the Metropolitan Municipality of Istanbul (MMI) on a loan of up to US$21 million that WestLB AG’s branch office in Istanbul has extended to Istanbul Electricity, Tram and Tunnel, a general directorate of MMI, which is financing the expansion of the project in Istanbul.
The underlying project forms a new arm of the current Light Rail Transit (LRT) which currently runs from the Aksaray neighborhood in the historic part of Istanbul to Atatürk International Airport via Otogar bus terminal. The project consists of two parts. The first phase of the project, “Otogar-Kirazlı LRT” will extend the existing LRT from the Otogar (intercity bus terminal) to densely developed residential areas in Bağcılar and Kirazlı. The second phase of the project, “Kirazlı -Ikitelli-Başak Konut/Olimpic Village Metro” will connect Ikitelli Organized Industrial Area and the new residential areas developed at Ikitelli to the rail network of Istanbul.
Phase one, Otogar-Kirazlı LRT, which consists of a double-track system of 5,510 meters to serve five stations, is the western extension of the existing LRT track operating between Aksaray and the International Airport. Phase two, Kirazlı-Ikitelli-Başak Konut /Olimpic Village Metro, which consists of a double track system of 15,834 meters to serve 15 stations, will be the western extension of LRT track planned to operate between Yenikapı and Kirazlı.
The project is a Category B under MIGA’s environmental review procedures. Click here to view the Environmental and Social Review Summary.
By extending coverage of the existing LRT to the suburban and light manufacturing areas to the west, the project will help improve urban mobility, and reduce travel times and traffic, thereby contributing to urban productivity and private sector-led growth. In addition, the expansion of public transportation in the city will reduce dependence on roads and motorways, which will help reduce the growth of transport-related greenhouse gases and, through the reduction in pollution, help make Istanbul a more attractive business location.
The proposed project is also aligned with the World Bank Group’s Country Partnership Strategy for Turkey. Improving transportation infrastructure is a key component of the Bank Group’s focus on helping Turkey improve its competitiveness and employment opportunities.