Today.Az » Business » ADB doubles loan amount for North-South project
11 August 2017 [12:31] - Today.Az
By Sara Israfilbayova
The Asian Development Bank (ADB) increased the loan amount [from $200 million to $400 million] for the International North-South Transportation Corridor (INSTC), as well as for the development of the railway sector of Azerbaijan.
The Bank reported that in this regard, ADB has postponed the terms of consideration of the credit allocation. The bank planned to review the project on August 25, 2017, but now the date was postponed to September 22, 2017.
Besides, the project fact gathering mission has been postponed from 1-11 August for 28 August-8 September 2017.
The loan will be directed mainly to develop the Baku-Yalama railway line (the border with Russia) within the framework of the INSTC and support the expansion of the autonomy of the management of the Azerbaijan Railways CJSC, effective financial restructuring of the company's obligations, expansion of financial and managerial control, efficiency and accountability in Azerbaijan Railways, as well as business development and corporate restructuring of the department.
The North-South infrastructure reconstruction project involves rehabilitation of the 441-kilometer Baku-Yalama [double-track] section, development of a computerized cargo management system and provision of consulting services for the project.
The International North–South Transport Corridor is a 7,200-km-long multi-mode network of ship, rail, and roadroute for moving freight between India, Russia, Iran, Europe and Central Asia.
The corridor is planned to transport 6 million tons of cargo per year at the initial stage and more than 10 million tons of cargo in the future.
The ADB was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.
Azerbaijan joined ADB on December 22, 1999 and the country's share in the bank's capital is 0.5 percent.