TURKEY: The national treasury is to continue to fund budget deficits run up by state railway infrastructure manager TCDD for a further 10 years until the end of 2033, according to a presidential decree published in the state gazette on October 6.
The existing agreement on TCDD’s overspend had been due to expire at the end of this year.
Under the terms of the extension, TCDD will in turn continue to fund overspends by train operator TCDD Taşımacılık until the end of 2033. TCDD Taşımcılık was separated from TCDD in 2016 and began operating as a separate company in 2017.
TCDD’s debts at the end of last year stood at TL5·728bn, which by June 30 this year had risen in to TL7·168bn.
According to media reports, around TL3bn is interest payments on overdue debts.
Both TCDD and TCDD Taşımcılık have huge investment programmes which are funded directly from the national investment budget.
TCDD’s budget for 2023 totals TL381·72bn, of which TL376·4bn is for ongoing infrastructure expansion and upgrading projects including development of new high speed lines. A further TL4·37bn is allocated to new projects being started during 2023, and TL970m for studies for future projects.
TCDD Taşımacılık’s budget for 2023 totals TL44·97bn of which TL21·87bn is for the purchase of 56 electric trainsets from state manufacturer Turasaş.
