The Permission to Use External Loan Without Treasury Guarantee for Buca Metro Has Been Extended

The Ministry of Treasury and Finance extended the permission of the Izmir Metropolitan Municipality to use "foreign credit without a Treasury guarantee" for another year, while continuing the financing negotiations for the Buca Metro Project.

İzmir Metropolitan Municipality is continuing its negotiations to provide foreign loans without a Treasury guarantee for the Üçyol-Buca Metro Line Project, which will be the largest investment in the history of İzmir with a budget of 1 billion 70 million Euros. Having received the pre-approval of 490 million Euros of funding from various international organizations, the Metropolitan also applied to the Ministry of Treasury and Finance and requested the extension of the "permission to use foreign credit without a Treasury guarantee". Approval letter from the General Directorate of Foreign Economic Relations of the Ministry of Treasury and Finance, stating that the period has been extended by one year, reached the Metropolitan Municipality.

Thanks from President Soyer

Mayor of Izmir Metropolitan Municipality Tunç Soyer, reminded that he conveyed the issue to President Recep Tayyip Erdoğan during his recent visit to Izmir. Pointing out that the permission was granted after this meeting, President Soyer said, "I would like to thank our President for his interest."

Tender announcement was announced

The tender announcement for the construction of the Üçyol-Buca Metro Line, which will be built by the Izmir Metropolitan Municipality with its own resources, was announced to the world by being published on the European Bank for Reconstruction and Development Supply Portal and the official website of the French Development Agency as of 13 February. With the tender announcement, the process of bidding and evaluation of the bids started. The construction of the project, which will give Buca a breath, is expected to start in November at the latest.

Loan on favorable terms

İzmir Metropolitan Municipality and EBRD signed a loan agreement of 2019 million Euros without Treasury guarantee in December 80. Later, this amount was increased to 125 million Euros. The Asian Infrastructure Investment Bank (AIIB) made a commitment of 125 million Euros, the French Development Agency (AFD) 125 million Euros, and the Black Sea Trade and Development Bank (BSTDB) 115 million Euros for the project. It is about to sign authorization letters with these organizations. Thus, the total of foreign loans provided without Treasury guarantee reached 490 million Euros. Under the EBRD letter of authorization, the interest rate of the project financing is EURIBOR + 3.20 percent for six months; the maturity was determined as 12 years, including a four-year grace period. Negotiations with other financing institutions are expected to match the interest rate and maturity to EBRD indicators.