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Projects

Project Brief

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
Kadikoy-Kartal-Kaynarca Metro Project
Project ID
9401
Fiscal year
2011
Status
Active
Guarantee holder
WestLB AG, London Branch
Investor country
Germany
Host country
Turkey
Environmental category
B
Sector
Transportation
Date SPG disclosed
February 24, 2011
Project Board date
March 31, 2011
Gross exposure
 $409.2 million
Project type
Non-SIP

View Summary of Proposed Guarantee


On April 21, 2011 MIGA issued a guarantee of $409.2 million for an investment by WestLB AG London Branch, for itself and as agent for a consortium of lenders, in the Kadikoy-Kartal-Kaynarca Metro Project in Istanbul, Turkey. MIGA’s guarantee covers principal and interest for a period of up to nine and a half years against the risk of non-honoring of sovereign financial obligations.

The project will be the first underground metro system on the Asian side of Istanbul. It will also eventually connect with the European side of city. The first phase of the project involves finishing the construction of 22 kilometers of the line from Kadikoy to Kartal, which includes 16 metro stations. The second phase consists of extending the metro line by 4.5 kilometers from Kartal to Kaynarca, the construction of a parking and maintenance area, and the construction of pedestrian subways.

By extending coverage of Istanbul’s metro system, the project will help improve urban mobility, and reduce travel times and traffic—thereby contributing to increased productivity and private sector-led growth. In addition, the expansion of public transportation in the city will reduce dependence on roads and motorways. This will help reduce pollution and help make Istanbul a more attractive location for residents and business.

The project is 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.

 
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