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Experts of Azerbaijan and Georgia Agree on Credit Agreement on Tbilisi-Baku-Kars Project

Politics Materials 25 January 2007 15:30 (UTC +04:00)
Experts of Azerbaijan and Georgia Agree on Credit Agreement on Tbilisi-Baku-Kars Project

On January 25th, experts of Azerbaijan, Georgia and Turkey agreed on the text of the credit agreement on the project on the construction of the railway Tbilisi-Baku-Kars, Trend reports referring to the Transport Ministry of Azerbaijan. The agreement is expected to be signed next month, after which Georgia will begin direct implementation of the project.

The work on this agreement lasted for several days in Baku. Meetings were held between the Head of Azerbaijan State Railway Department, Arif Askerov and Chief of the Railways of Georgia, Irakli Ezukbay. According to representatives of the Ministry, Azerbaijan will present $200 mln credit to Georgia, with an interest rate of 1%. This loan will be repaid from revenue, except operational expenses (expenses on development, etc.), by the Georgian organization which receives the loan.

The project on the building transport railway corridor Kars-Akhalkalaki-Tbilisi-Baku includes the construction of railway line Kars-Akhalkalaki a distance of 98 km, 68 km which will be in Turkish territory and 30 km in the territory of Georgia. Some reconstruction work is needed on the railway section Akhalkalaki-Tbilisi. The value of the projects is estimated at $400 mln.

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