Azerbaijani Transport Ministry announces terms of additional funding to Georgia

The second tranche of a loan allocated by Azerbaijan to the construction and rehabilitation of the Georgian section of the Baku-Tbilisi-Kars railway has been issued for 25 years at an annual rate of five percent, Azerbaijani Transport Ministry said on Friday. The second tranche envisages allocation of $575 million by the Azerbaijani side.

The first tranche worth $200 million has been also allocated to the Georgian side for 25 years at an annual rate of one percent.

According to amendments made to an agreement which was signed between the Azerbaijani and Georgian governments with regard to work on funding, design, construction, reconstruction and rehabilitation of the Marabda-border with Turkey (Kartsakhi) railway section, the total amount of credit line amounted to $775 million.

The State Oil Fund of Azerbaijan (SOFAZ) finances the construction and rehabilitation of the Georgian section of the Baku-Tbilisi-Kars railway.

A new 105-kilometer railroad branch will be constructed as a part of the Baku-Tbilisi-Kars Railway. About 76 kilometers will stretch via Turkey, 29 kilometers through Georgia. Moreover, an Akhalkalaki-Tbilisi-Marabda railway section will be reconstructed in Georgia to increase transport capacity up to 15 million tons of cargo a year. A point of train transition from the existing train tracks in Georgia to the European one is planned to be built in Akhalkalaki.

Mammadov said earlier that the completion of construction work is planned for the first half of 2012. But, despite the agreed timeframe of the project, the sides are working to speed up the process and complete most of the works by the end of 2011.

The corridor's peak capacity will hit 17 million tons. Initially, its capacity will reach 1 million passengers and 6.5 million tons of cargo.


/Trend/