IFC invests in a 18-kilometer tram line in Antalya

To strengthen Antalya’s sustainable future, the municipal government, with support from IFC, is investing in an 18-kilometer tram line that will connect the northern suburbs to the center, where most businesses are located. The new structure is expected to reduce gridlock, spur growth, and make Antalya one of the most liveable cities in Turkey.

“Every big city around the world struggles with traffic congestion, and the only way to address this is to improve public transportation,” says Antalya’s mayor, Menderes Turel. “The new tram line will create good economic and environmental value for the city and be the preferred way of transportation.”

IFC is spearheading a €140 million financing package for the tram line—including €80 million from our own account. The remaining €60 million is being mobilized through the Managed Co-Lending Portfolio Program (MCPP), a pioneering syndications platform that enables institutional investors to participate in IFC’s loan portfolio. The investment is coupled with comprehensive advisory support to help the city improve the efficiency, safety, and environmental and social performance of its public transport system.

Once fully operational in 2021, the new line will reduce the average travel time by 25 percent and reduce greenhouse emissions by around 35 percent, because of reduced congestion and fewer cars and buses on the road. The line will feature 29 new stations and is expected to carry 25 million commuters a year, up from 13 million a day carried by the existing two-line tram system.

Original source: IFC
Published on 22 May 2018