Turkiye: TCDD Railway Maintenance Modernization Project (AIIB-000951)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Turkiye
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 365.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 365.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jun 4, 2025

Disclosed by Bank May 29, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the AIIB, the project development objective is to enhance rail infrastructure maintenance by modernizing track vehicles, adopting sustainable practices, and ensuring safe, reliable, and efficient operations across Turkiye serving as a regional logistic hub.

The Project supports the modernization of Turkiye State Railways' (TCDD) maintenance operations through the procurement of specialized machinery for track, overhead line, and seasonal maintenance across the national rail network.

In parallel, the Project will provide targeted training for TCDD personnel and assess digital readiness to ensure the effective integration of new technologies. These efforts will strengthen institutional capacity and support the long-term sustainability of Turkiye's railway operations.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the AIIB, the total project cost is US$ 500 million, divided as follows:

- AIIB: USD365 million
- Government of Türkiye (GOT): USD135 million

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Devex, the State Railways of the Republic of Turkey (Turkish: Türkiye Cumhuriyeti Devlet Demiryollari), abbreviated as TCDD, is a government-owned national railway company responsible with the ownership and maintenance of railway infrastructure in Turkey, as well as the planning and construction of new lines. TCDD was formed on 4 June 1929 as part of the nationalisation of railways in Turkey.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Turkish State Railways (TCDD) Contractor Transport

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB Team Leader:

Natalia Sanz - Senior Investment Officer
Email: natalia.sanz@aiib.org

Client - Government of Turkiye:

Kerem Donmez - Director General, General Directorate of Foreign Economic Relations
Email: kerem.donmez@hmb.gov.tr

Implementing Agency - Ministry of Transport and Infrastructure:

Ismail Murtazaoglu - Deputy Director General, Türkiye State Railways (TCDD)
Email: disab@tcdd.gov.tr

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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