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ERG Inşaat–WC Loan for Ankara-Izmir Rail

Türkiye | Industrials

Identification Code:: OP/25/0043
Total Operation Cost:: 2.162.000.000 EUR
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

50.000.000 EUR – 05 Feb 2026
: BSTDB Signed Amount – Signed Date

50.000.000 EUR – 01 Apr 2026
: Status:
Active
Description and Purpose of the Operation:: Provision of a working capital loan of EUR 50 million to ERG Inşaat Ticaret ve Sanayi A.Ş. for its affiliate Ankara Izmir YHT Yapımı Iş Ortaklığı who implements under an EPC contract the project Ankara-Izmir High Speed Railway (the Project) for the General Directorate of Infrastructure Investments of the Turkish Ministry of Transport and Infrastructure.
Countries of Operation:: Türkiye (100,00%)
Financial Product:: Loans
Sector:: Industrials
Domain:: Private
Borrower/Client:: ERG Inşaat Ticaret ve Sanayi A.Ş. (Türkiye) ERG Inşaat is a highly reputable private construction company established in Ankara in 1972. It has successfully implemented construction contracts worth over USD 3 billion in Türkiye.
Co-Financers/Participants:: ECAs and commercial banks
Guarantors/Sponsors:: n.a.
Developmental and Regional Cooperation Impact:: The Project has a strong developmental impact. While BSTDB’s contribution is small compared to Project size, the Project itself is significant and will have an important developmental impact by connecting the country’s capital and the second biggest city with the third biggest city in Türkiye and lowering the time to travel from 14 hours currently to 3.5 hours. Additionally, it will have significant environmental impact. Financing of climate change mitigation and adaptation operations is a sector where the Bank aims to increase its presence. This includes carbon emission reduction projects like Ankara-Izmir High-Speed Railway. While there is no direct “regional cooperation” element in the Project, there are certain indirect regional cooperation benefits of the Project. Once operational, the new railway can result in more travel from Ankara to Greek Aegean islands and vice versa.
Environmental Classification and Impact:: Screened as an E&S Category A project, that required ESIA and 60-day public disclosure of all key E&S documents (ESIA, ESAP, SEP) in both Turkish and English before the BSTDB Board considered financing. The Project's E&S monitoring is conducted by Arup (IESC), with a duty of care to the Lenders. The last quarterly monitoring report (December 2025 – March 2026) concluded that the material non-compliances related to land access compensation and delayed payments from the previous monitoring periods, have been resolved. Moreover, no significant incidents were recorded during the last two monitoring periods. Corrective measures applied mean that the Project is now in compliance, as no new or high-risk issues were identified. While definite improvements have been observed, certain recommendations regarding biodiversity management, safety culture, leadership and control of proper use of PPE still require implementation to avoid project, financial, and contractual risks. As such, the efforts made by the EPC contractor should continue to keep the Project aligned with international standards, effectively mitigate risks, and ensure the successful delivery of the anticipated positive environmental, climate, and socio-economic impacts.
Operation Leader:: General Industries, Transport, Tourism 2
E-mail:: gitt2@bstdb.org