Turkey Secures €350 Million External Financing to Modernize Railway Infrastructure

Turkey has obtained €350 million from Asian Infrastructure Investment Bank (AIIB) to support the “TCDD Railway Maintenance and Modernization Project,”.

December 9, 2025 11:40 am | Last Update: May 17, 2026 1:39 pm

09 December 2025 – Ankara, Turkey has arranged €350 million in external financing from the Asian Infrastructure Investment Bank (AIIB) to support the TCDD Railway Maintenance and Modernization Project, the Ministry of Treasury and Finance announced.

The funds will be used to upgrade the national rail network, including the construction of new railway lines, renovation of existing ones, and procurement of high-capacity track maintenance and monitoring machinery. With this financing, Turkey’s total externally sourced project financing for 2025 has exceeded US$15 billion. Investments in transport infrastructure — including railways — have pushed total external funding for the sector above US$5 billion this year.

Minister of Treasury and Finance Mehmet Şimşek emphasized that strengthening the transportation backbone supports trade, tourism and regional development. He added that improving railway infrastructure will enhance Turkey’s competitiveness, reduce its carbon footprint, and aid compliance with the EU’s border-carbon regulations. The government continues to work closely with international financial institutions to secure favorable funding for infrastructure development.

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