EIB floats future collaboration with Türkiye on railway infrastructure

Railway infrastructure could be one of the areas in which a major European multilateral lender could cooperate with Türkiye, its senior official said, according to a transcript of an interview released on Thursday.

“Railway infrastructure could be one of the areas where we can contribute in the future,” said Robert de Groot, vice president of the European Investment Bank (EIB).

Answering questions posed by Anadolu Agency (AA) regarding the bank’s relations with Türkiye and its activities across the European Union, de Groot first evaluated the financing agreements the EIB has signed with the Türkiye Development and Investment Bank (TKYB) and Türk Eximbank.

The bank recently said it would provide 200 million euros (more than $230 million) to Türkiye to back investments in renewable energy, energy efficiency and sustainable industrial production.

Highlighting the importance of green energy and energy efficiency, which are the focus of the agreements, de Groot underscored that efficiency holds “a significant place” on the business agenda.

“Energy efficiency means reducing the need for energy, which we are to some extent dependent on today due to geopolitical developments, by consuming less. Companies are looking for ways to reduce their energy consumption and maximize the use of renewable energy. Therefore, whether in Türkiye or elsewhere in Europe, energy efficiency holds a significant place on the agenda of almost every businessperson you talk to,” he told AA.

De Groot also addressed the impact of the credit they provided in 2023 for the earthquake zone, sharing his observations from his visit to Hatay, one of the cities harshly impacted by powerful tremors that struck southeast Türkiye in February that year.

“People have suffered deeply and continue to do so. This has affected me profoundly. Nevertheless, their determination to rebuild Antakya and Hatay also impressed me,” he said.

“Rebuilding a city is not easy, and various challenges inevitably arise. However, I was pleased to see the progress in the work aiming to provide people with access to drinking water, a responsibility the EIB has undertaken.”

De Groot stated that he sees the visits they have made to Hatay, Ankara and Istanbul as the start of a new era in the relations between the EIB and Türkiye, hoping for a strong project pool to be formed quickly in this context.

Noting that their representation in Istanbul will work to determine new projects that the EIB can finance, de Groot spoke about future cooperation areas.

“I know that Türkiye has big plans to expand and modernize its railway infrastructure. Within the EU, we are working in the same area. We have significant expertise in this regard. Therefore, railway infrastructure could be one of the areas where we can contribute in the future,” he said.

EU defense push

De Groot also touched upon EIB’s activities across the EU, pointing to the need for EU countries to increase investments, especially in the defense sector, and the commitments of NATO countries to increase defense spending.

Telling that EU leaders have requested financial support from the EIB in the field of defense, De Groot said they continue to work in this direction.

“A significant portion of our financing to the EU is directed towards infrastructure, which has not been sufficiently invested in for many years,” he maintained.

De Groot stated: “We are investing in R&D efforts for new technologies. We are supporting the increase in production capacity of the defense industry in Europe. Additionally, we are trying to support SMEs involved in the supply chains of major European defense companies.”

Provided resources

Operating as the bank of the European Union, the EIB has been offering loans and technical support to thousands of projects in more than 160 countries since 1958, making it one of the largest multilateral development banks in the world.

The bank, which started its activities in Türkiye in 1965, has provided a total of 30.86 billion euros in financing for 263 projects in the country so far, primarily in areas such as transportation, urban infrastructure, climate action, energy, agriculture, and the development of the private sector, as per AA.

Notable agreements between the bank and Türkiye include a 400 million euro loan agreement signed to repair water and wastewater infrastructure in the region following the earthquakes centered in Kahramanmaraş on Feb. 6, 2023.

Additionally, two separate financing agreements totaling 200 million euros were signed in recent days from the bank’s resources. Thus, 100 million euros will be provided for sustainable industrial investments through TKYB, and 100 million euros will be available for green financing projects by Turkish exporters through Türk Eximbank.

DAILYSABAH