Wedoany.com Report-Aug. 26, KfW IPEX-Bank, a German commercial bank, is contributing €200 million to finance the construction of a 25-kilometer highway and railway tunnel connecting Dörtyol and Hassa in Hatay Province, Türkiye. The funding package, announced on August 26, 2025, includes a tranche supported by the Swedish Export Credit Agency (EKN) and a commercial tranche backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

As a Mandated Lead Arranger, KfW IPEX-Bank collaborates with seven international banks, with Société Générale coordinating the €1.54 billion financing effort. Aida Welker, a board member at KfW IPEX-Bank, stated: “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.”

The tunnel will link southeastern Anatolia’s industrial hubs with the port of Iskenderun on the eastern Mediterranean, reducing travel times for freight and passengers. By bypassing the Nur Mountains, the project is expected to lower CO₂ emissions through more efficient rail and road transport. Welker added: “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.”

The project, managed by the General Directorate of Infrastructure Investments (AYGM) under Türkiye’s Ministry of Transport and Infrastructure, is executed by a joint venture of contractors Doğuş İnşaat ve Ticaret A.Ş. and Eze İnşaat A.Ş. The Ministry of Treasury and Finance serves as the borrower. A significant portion of construction materials will be sourced from European suppliers, supporting international trade and quality standards.

This initiative enhances Türkiye’s transport infrastructure by providing modern, safe, and sustainable connectivity. The tunnel’s design prioritizes resilience against seismic activity, addressing challenges faced by the region following the 2023 earthquake. It also supports environmental goals by promoting low-carbon transport options, aligning with efforts to decarbonize the sector.

KfW IPEX-Bank’s financing reflects its commitment to supporting sustainable infrastructure projects globally. The Dörtyol-Hassa tunnel is expected to drive economic growth in Hatay Province by improving access to the Iskenderun port, facilitating trade, and strengthening regional connectivity.