ICD Commits EUR 40 Million to Türkiye’s Northern Marmara Highway Project

The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB) Group, has signed a EUR 40 million agreement to co-finance the Northern Marmara Highway Project in Türkiye. This contribution is part of a broader EUR 1.04 billion senior debt package backed by leading international financial institutions, marking a significant milestone in cross-border infrastructure cooperation.

Context and Background

The Northern Marmara Highway Project aims to enhance east-west connectivity around Istanbul, one of the world’s most dynamic metropolitan regions. The project is being developed under a build-operate-transfer (BOT) model, a structure that aligns with Saudi Arabia’s own infrastructure development strategies under Vision 2030. The highway spans 31.3 kilometers, featuring a 1.6-kilometer cable-stayed bridge and multiple overpasses and underpasses, designed to improve road safety and reduce congestion in the region.

Key Details

ICD’s EUR 40 million commitment is part of a larger syndicated financing package that includes the European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB), and the Islamic Development Bank (IsDB), alongside a consortium of commercial lenders. The project incorporates a Solar Energy Production System, where clean energy from solar panels will meet the operational and management energy needs of the highway’s service stations and operations center. This aligns with global sustainability goals and reflects best practices in green infrastructure.

Implications and Impact

The project underscores the growing role of Saudi-led financial institutions in supporting vital infrastructure beyond the Kingdom’s borders. By co-financing this Turkish highway, ICD demonstrates its commitment to fostering economic integration, trade, and mobility across the region. The environmental benefits are substantial: the project is expected to prevent 7.9 million tons of greenhouse gas emissions over 30 years, including reductions of 1,399 tons of particulate matter and 58,699 tons of nitrogen oxides. Such outcomes support Türkiye’s climate goals while enhancing connectivity and economic growth.

Vision 2030 Alignment

This co-financing agreement reflects Saudi Arabia’s broader ambitions under Vision 2030, which emphasize international partnership, sustainable development, and economic diversification. By supporting infrastructure projects that improve trade routes and adopt green technology, Saudi institutions like ICD are contributing to regional stability and prosperity. The Northern Marmara Highway Project stands as a concrete example of how Saudi-backed financing can facilitate transformative infrastructure that benefits economies and communities across the Islamic world and beyond.

20 Questions

Q1. What is the Islamic Corporation for the Development of the Private Sector (ICD)?

A1. The ICD is the private sector development arm of the Islamic Development Bank Group, based in Jeddah, Saudi Arabia. It supports economic development by financing private sector projects in member countries.

Q2. How much has ICD committed to this project?

A2. ICD has committed EUR 40 million to co-finance the Northern Marmara Highway Project in Türkiye, as part of a larger EUR 1.04 billion financing package.

Q3. What is the total value of the financing package?

A3. The total senior debt package is EUR 1.04 billion, fully financed by international institutions and commercial lenders.

Q4. Which other institutions are involved in financing?

A4. The financing includes the European Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank, the Islamic Development Bank, and a consortium of commercial lenders.

Q5. What is the location of the Northern Marmara Highway?

A5. The highway is located in Türkiye, around Istanbul, and aims to enhance east-west connectivity across the broader Marmara region.

Q6. How long is the highway?

A6. The highway spans 31.3 kilometers and includes a 1.6-kilometer cable-stayed bridge, along with multiple overpasses and underpasses.

Q7. What is the build-operate-transfer (BOT) model?

A7. A BOT model is a public-private partnership where a private entity builds, operates, and then transfers the infrastructure back to the government after a concession period.

Q8. What are the main objectives of this highway project?

A8. The project aims to improve road safety, reduce traffic congestion, and enhance connectivity between the eastern and western parts of Istanbul.

Q9. Does the project include environmental features?

A9. Yes, it includes a Solar Energy Production System to power the highway’s operations and service stations with clean energy.

Q10. How will the solar energy system be used?

A10. Clean energy from solar panels will meet the energy needs of the highway’s operation and management center and service stations.

Q11. What are the expected environmental benefits?

A11. The project is expected to prevent 7.9 million tons of greenhouse gas emissions over 30 years.

Q12. How much particulate matter (PM) will be reduced?

A12. The project will reduce particulate matter emissions by 1,399 tons over the same period.

Q13. How much nitrogen oxides (NOx) will be reduced?

A13. Nitrogen oxide emissions are expected to be reduced by 58,699 tons over 30 years.

Q14. What is the role of the Islamic Development Bank (IsDB) in this project?

A14. The IsDB is one of the co-financiers in the larger EUR 1.04 billion debt package, alongside ICD, EBRD, and AIIB.

Q15. How does this project align with Saudi Arabia’s Vision 2030?

A15. The project supports Vision 2030 by demonstrating Saudi leadership in international infrastructure financing, sustainability, and economic diversification.

Q16. Why is this project important for Türkiye?

A16. The project improves transportation connectivity around Istanbul, reduces commuting time, and supports economic growth through better logistics.

Q17. What is the significance of ICD’s involvement?

A17. ICD’s involvement highlights the expanding global role of Saudi-backed development finance in supporting sustainable infrastructure in member countries.

Q18. Is this the first such collaboration between ICD and Turkish entities?

A18. The provided source does not specify if this is the first collaboration, but it represents a significant co-financing agreement with multiple international partners.

Q19. How does the highway improve road safety?

A19. The highway design includes modern safety features, multiple overpasses, and underpasses, which help reduce accidents and improve traffic flow.

Q20. When was the agreement announced?

A20. The agreement was announced on November 1, 2024, by the Saudi Press Agency (SPA), reflecting official Saudi sources.

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