World Bank, Türkiye work jointly on ‘Middle Corridor’ development
A train carrying goods from Türkiye to China departs from the northwestern province of Kocaeli, Türkiye, Dec. 6, 2020. (AA Photo)


The World Bank's Türkiye director said Thursday that the lender is working with the country's Transportation and Infrastructure Ministry on the development of the "Middle Corridor" trade route.

"To develop the Middle Corridor trade route connecting Georgia to Bulgaria and passing via Istanbul, the first part needs to become operational," Humberto Lopez told an interview with Anadolu Agency (AA).

The Trans-Caspian East-West-Middle Corridor Initiative, widely known as the Middle Corridor, begins in Türkiye and passes through the Caucasus region via Georgia and Azerbaijan, crossing the Caspian Sea and traversing Central Asia to reach China. It is one of the most important components of the efforts to revive the ancient Silk Road.

As part of his statements to AA, Lopez mentioned that the World Bank primarily collaborates with the public sector.

However, he said they have established a private equity fund with the Industrial Development Bank of Türkiye (TSKB), adding: "We are doing this for the first time in Türkiye and the world."

Explaining that they provided a loan to the TSKB, which was used to activate the private equity fund, Lopez noted that this attracted the interest of the private sector.

Noting that the work is currently in the preparatory phase, Lopez said: "The TSKB and the Türkiye Development and Investment Bank (TKYB) will both use resources to balance and provide additional credit to the private sector."

Lopez also mentioned an operation in the preparatory stage with the Export Credit Bank of Türkiye (Türk Eximbank), stating that they provided a loan worth $600 million (TL 17.29 billion) to Türk Eximbank, which he said would be directed toward exporters.

Regarding the Middle Corridor trade route, Lopez emphasized their focus on public infrastructure. "We are working with the Ministry of Transportation and Infrastructure to develop the Middle Corridor trade route. The first phase of the Middle Corridor trade route, connecting Georgia to Bulgaria and passing through Istanbul, needs to become operational. The expected cost of the first phase is over $600 million," Lopez underscored.

He also recalled that in addition to the bank’s ongoing program of $17 billion for Türkiye, they planned an additional $18 billion in funding for new operations for the next three years.