ODA Loan to Turkey -- assistance for the economic development and environmental measures through improvement of traffic network

August 19, 1999

  1. The Government of Japan has decided to extend to the Government of the Republic of Turkey an ODA loan of up to 41,831 million yen for two projects, with a view to assisting its efforts for economic and social development. Notes to this effect were exchanged on August 19 (Thu) in Ankara between Mr. Masahiko Koumura, Minister for Foreign Affairs of Japan, now visiting Turkey, and Mr. Recep Onal, State Minister of Turkey.

  2. Projects and maximum amounts of ODA loan (see the attached sheet for details)
    (1) Bozuyuk-Mekece Road Improvement Project: up to 29,367 million yen
    (2) Bosphorus Rail Tube Crossing Project (I): up to 12,464 million yen

    Total:    up to 41,831 million yen

  3. Terms and conditions of the loan
    (a) interest rate for the main part of 2. (1): 2.2% interest rate for the consultancy part of 2. (1): 0.75% (for Special Environmental Projects)
    interest rate for 2. (2): 0.75% (for Special Environmental Projects)
    (b) repayment period: 25 years (including a 7-year grace period), but
    40 years (including a 10-year grace period) where interest rate
    for Special Environmental Projects is applied
    (c) procurement method: for the main part of 2. (1): general untied
    for the main part of 2. (2): partially untied
    for the consultancy part of 2. (1) and 2. (2): bilateral tied

  4. With the present ODA loan, the accumulative total of Japanese ODA loans to Turkey will be 396,499 million yen, of which 7,565 million yen is rescheduled debts.

Outline of the projects
  1. Bozüyük-Mekece Road Improvement Project (up to 29,367 million yen)
    National road no. 650 connects the north and south of Turkey; it is used to transport industrial goods produced in the Marmara region in the northern part of the country and the agricultural produce and light industrial goods produced in the Mediterranean region in the southern part of the country. The Bozüyük-Mekece section has been a bottleneck because of the heavy traffic, especially of heavy vehicles, and the steep slope.
    The aim of this project is to ease traffic congestion and promote industry through smooth distribution by expanding and improving the two-lane road into a four-lane road and by constructing a bypass in the urban area.

  2. Bosphorus Rail Tube Crossing Project (I) (up to 12,464 million yen)
    In Istanbul, a city divided by the Bosphorus, traffic congestion is chronic where two bridges link the residential district on the Asian side and the commercial district on the European side, and problems are caused by atmospheric contamination from the exhaust fumes of the heavy traffic and excessive fuel consumption.
    Construction of a subway across the Bosphorus is therefore considered a major means of mass transportation imposing only a light burden on the environment; this project will provide part of the construction fee for the underground tunnel and part of the consultancy fee.


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