The Japan Bank for International Cooperation (JBIC) has signed a memorandum of understanding (MOU) with the Export-Import Bank of Korea (Kexim) to support a commuter train delivery project in Turkey. The MOU specifies cooperative activities between JBIC and Kexim, a cofinancing partner in this deal.

Under the project, Turkiye Cumhuriyeti Devlet Demiryollari (TCDD) will put new rolling stock (96 cars) into commuter rail service on the suburban railway lines of the Turkish capital, Ankara. The consortium of Japan’s Mitsui & Co and Rotem, a railway car manufacturer in Korea, tendered bids for the project and won the order. Toshiba Corporation will supply main converters, main electric motors, and air-conditioning systems, while Rotem will supply and assemble the rolling stocks.

Turkey’s import and export trade reached record levels in 2004. European, Asian, and North American firms are vying for orders relating to transport and traffic infrastructure.

It was JBIC/Kexim’s offer of a low interest, long-term loan that enabled the Japan-Korea consortium to win the bidding process for this project. The loan was proposed as a matching loan, countering a competitive proposal made by a Spanish company.

JBIC hopes to develop further joint business efforts with South Korea. Through such joint efforts, JBIC is committed to providing financial support to ensure the competitiveness of Japanese businesses in international markets.