Azerbaijan's Railway Development Program to be 50% financed by external loans

Gurban Nazirov, an official of Azerbaijan State Railway Company (ADDY), told APA-Economics that the infrastructure development program is aimed at railway modernization, including rationalizing the track and rolling stock asset base, increasing productivity, setting up a new legal framework and building up management capacity.

"According to the preliminary joint calculations, the program requires about AZN 1.2 billion in investment. The program will be financed through funding from the government, ADDY, investments and loans. The funding will 50% come from international organizations in the form of loan," he said.

He also noted that ADDY plans to switch to alternating current locomotive system, which needs 60 new locomotives.

"At present there are 100 locomotives. The new system will enable to cut excessive works and expenses. European countries use this system too," he concluded.