Türkiye has secured a 1.7 billion euro ($2 billion) loan to finance the public-private partnership (PPP) project to build a highway linking the Mediterranean tourism hubs of Antalya and Alanya, a statement said Tuesday.
The agreement for the financing to be arranged by a consortium of 14 banks and financial institutions was signed in Ankara on Monday, the Transport and Infrastructure Ministry said.
About 87% of the sustainability-linked credit, which represents 70% of the project's total 2.43 billion euro investment cost and includes a 14-year maturity, was provided by foreign-capital financial institutions.
Transport and Infrastructure Minister Abdulkadir Uraloğlu said that 30% of the investment will be covered through equity and 70% through bank loans.
The project is expected to be completed within three years. The financing process attracted 2.1 times more demand than the amount required, Limak Holding, the conglomerate undertaking the project, said in a statement.
The highway will cut travel time from 2.5 hours to just 36 minutes between the two popular tourist destinations on Türkiye's southern coast.
Limak, a construction-to-energy conglomerate, will work with a consortium including the Asian Infrastructure Investment Bank (AIIB), Islamic Development Bank (IsDB), Islamic Corporation for the Development of the Private Sector (ICD), Silk Road Fund, Akbank, Deutsche Bank, Garanti Bank and Ziraat Bank.
This marks the first long-term investment in Türkiye by the Silk Road Fund, which operates under China's Belt and Road Initiative.
The Antalya-Alanya Highway will span 122 kilometers (76 miles), including 84 kilometers of highway and 38 kilometers of connecting roads, following a corridor along the foothills of the Taurus Mountains.
Uraloğlu emphasized the strategic importance of the project for the region's economy, tourism and transport connectivity.
"The Antalya-Alanya Highway is not just a transportation route but a development initiative that will strengthen tourism, trade and the regional economy," he said.
Uraloğlu said the project will "stand as an example of modern engineering" that will significantly reduce traffic congestion during the summer months."
"With a design speed of 140 kph, the highway will cut travel time between Antalya and Alanya from as long as four hours in peak season to just 36 minutes," the minister said.
According to Uraloğlu, it will also save approximately TL 17.7 billion ($420 million) annually – TL 16.9 billion from time savings and TL 800 million from fuel – while reducing annual carbon emissions by 47,000 tons.
The minister also highlighted that the project demonstrates global investor confidence in Türkiye's economy and PPP model. "When international financial institutions say, 'We will finance this project,' it is a clear indication of trust in Türkiye's economic stability," Uraloğlu said.
