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. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Otogar-Bağcılar-Ikitelli-Olimpic Village Metro Project
- Project ID
- Fiscal year
- Not Active
- Guarantee holder
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- November 16, 2010
- Project Board date
- December 20, 2010
- Gross exposure
- $19.5 million
- Project type
- ESRS for Rail Transit Network in Istanbul
On December 27, 2010, MIGA issued a guarantee of $19.5 million to cover an investment by WestLB of Germany in the Otogar-Bağcılar-Ikitelli-Olimpic Village Metro Project in Turkey. MIGA’s guarantee is for a period of up to three years against the risk of non-honoring of sovereign financial obligations. It covers a guarantee by the Metropolitan Municipality of Istanbul (MMI) on a loan amount of up to $21 million that WestLB AG’s branch office in Istanbul (WestLB 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 project consists of two parts. The first section of the project, “Otogar-Kirazlı LRT”, will extend the existing Light Rail Transit 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 create a new metro line that will connect the Ikitelli Organized Industrial Area and the new residential areas developed at Ikitelli to the rail network of Istanbul.
Section 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. Section two, Kirazlı-Ikitelli-Başak
Konut/Olimpic Village Metro, which consists of a double track system of 15,834 meters to serve 11 stations, will be the western extension of the metro track planned to operate between Yenikapı and Kirazlı.
By extending coverage of the metro system 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 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.