Japan's Bank for International Cooperation has agreed to lend Türkiye 98.7 billion yen (roughly 941 million dollars) to fund construction of a rail tunnel beneath the Bosphorus strait, the waterway that divides Istanbul between Europe and Asia. Türkiye's treasury described it as the single largest one-time loan the Japanese government has ever committed to one project, praising the repayment terms as highly favorable.
The tunnel will stretch 1,600 meters at a depth of 60 meters below sea level, connecting existing rail lines on both sides of the city. A Turkish-Japanese consortium broke ground last May despite concerns about seismic risk. Officials say the structure, embedded two meters into bedrock, is designed to withstand earthquakes of up to magnitude nine.
Japan previously provided 118 million dollars for the project in 1999, meaning its two loans now cover the full construction cost. Türkiye will begin repaying the new loan in 2015 over a 30-year period at an interest rate of 0.75 percent.
Last July, Ankara also obtained 650 million euros from the European Investment Bank for other portions of the work. The treasury said it is still seeking financing to cover remaining costs; total project expenses are estimated at 2.8 billion dollars, not counting expropriation payments. The tunnel is targeted to open by late 2009.
Historical summary. TurkishPress restated this AFP wire report, first published in February 2005, in its own words.