Turkish and Japanese officials yesterday signed a $937 million loan accord for a project to construct a rail tunnel linking Asia and Europe below Istanbul’s Bosporus strait. The tunnel is part of the multibillion-dollar Marmaray project that will connect suburban train lines on the two sides of Turkey’s largest city. “The Japanese government loan has a very low cost considering market conditions, and this increases the project’s attractiveness for international lenders in securing the remaining $1.7 billion in financing,” Economy Minister Ali Babacan said. The credit will have a 40-year maturity, with no repayment due the first 10 years and six-monthly payments over the remainder of the period. The entire tunnel project stretches over 13.5 kilometers long, of which a 1.6-kilometer (1-mile) section will be an immersed tube within the strait, and is scheduled to be completed in 2008. The entire project is planned for completion in 2009 at a total estimated cost of $2.6 billion. The Japanese-Turkish consortium TKGN, made up of Taisei Corp, Kumagai Gumi, and Turkish firms Gama and Nurol, signed the tender accord in May last year and construction began at the end of August.