On June 5, 2014, MIGA issued a guarantee of $91.1 million to ING Bank, a branch of ING-DiBa AG of Germany for its non-shareholder loan to the Izmir Metropolitan Municipality of Turkey. MIGA’s coverage of $91.1 million is for a period of up to 13 years against the risk of non-honoring of financial obligations by a sub-sovereign entity.
The Izmir Metropolitan Municipality is investing in the construction of two urban tramway lines and related rolling stock. The Konak tramway will be a 12.8 kilometer, fully electrified street tram line with 19 stations and 21 tram vehicles operating along a dedicated right-of-way on the southern and eastern side of Izmir bay. The Karsiyaka tramway will be a 9.7 kilometer, fully electrified street tram line with 16 stations and 17 tram vehicles operating along a dedicated right-of-way on the northern side of Izmir Bay.
The World Bank Group’s International Finance Corporation (IFC) is a lender to the project.
The project will improve urban transit services, limit traffic congestion along important sections of Izmir’s arterial road network, and contribute to greenhouse gas reduction.
The project will also complement MIGA’s recent support to Izmir’s marine transport project and IFC’s traffic management project, both of which will reduce road congestion and, in the former, increase connectivity between different modes of transport within the city.
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.
MIGA’s support for this investment is also aligned with the Agency’s strategy of supporting complex projects.