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German bank backs Türkiye’s Dörtyol-Hassa railway tunnel project

Transport Materials 26 August 2025 11:41 (UTC +04:00)
German bank backs Türkiye’s Dörtyol-Hassa railway tunnel project
Aytaj Shiraliyeva
Aytaj Shiraliyeva
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BAKU, Azerbaijan, August 26.​ German commercial bank KfW IPEX-Bank is providing 200 million euros in funding for the construction of the Dörtyol-Hassa highway and railway tunnel in Türkiye, Trend reports via the KfW IPEX-Bank.

The financing package includes a tranche guaranteed by the Swedish Export Credit Agency (EKN) and a commercial tranche backed by investment and export credit insurance from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

KfW IPEX-Bank acts as the Mandated Lead Arranger (MLA) together with seven international banks, while Société Générale coordinates financing totaling 1.54 billion euros.

“This transaction not only demonstrates our expertise in financing sustainable railway infrastructure and export projects, but also supports efforts to strengthen the region’s resilience to major seismic events,” said KfW IPEX-Bank board member Aida Welker.

The 25-kilometer rail and road tunnel will connect the Dörtyol and Hassa districts in Türkiye's Hatay Province. The tunnel is strategically important as it will link southeastern Anatolia’s industrial centers with the major port of Iskenderun on the eastern Mediterranean. This will significantly reduce travel times for freight and passengers while cutting CO₂ emissions by allowing rail and road transport to bypass the Nur mountains.

“In addition, the new tunnel will benefit regions heavily affected by the 2023 earthquake and provide seismically resilient transport infrastructure for road and rail traffic. A significant portion of construction supplies will be sourced from European companies.

The project is implemented by a joint venture of contractors Doğuş İnşaat ve Ticaret A.Ş. and Eze İnşaat A.Ş. The project owner is the General Directorate of Infrastructure Investments (AYGM) under the Ministry of Transport and Infrastructure of Türkiye, and the borrower is the Ministry of Treasury and Finance of Türkiye.

Through this financing, KfW IPEX-Bank contributes to the development of modern, safe transport infrastructure in Türkiye and supports the decarbonization of transport,” the information notes.

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