BAKU, Azerbaijan, March 28. The Cabinet of Ministers of Azerbaijan has approved the "Rules for the provision of subsidies for passenger transportation activities on the Baku suburban railway line," Trend reports.
The fare and other income (derived from advertising and
passenger activities) are considered to provide subsidies for
passenger activities along the route.
The expenses considered for the provision of subsidies related to
passenger transportation along the route include:
- salaries and payroll deductions of employees at stations, trains along the routes, and employees engaged in other structural units directly servicing these routes;
- electricity costs;
- expenses related to the maintenance of rolling stock and spare parts;
- insurance expenses;
- expenses for the maintenance and operation of railway stations and passenger platforms on the respective route;
- expenses related to the service of the passenger transportation department;
- depreciation amount of fixed assets used in passenger transportation and acquired with own funds;
- depreciation amount for capital repair costs capitalized from own funds, fixed assets used in passenger activities;
- interest on loans obtained for the acquisition (construction or installation) of fixed assets for passenger transportation, and taxes deducted from revenues;
- expenses for the operation and maintenance of infrastructure on the routes;
- other operational expenses for providing the service;
- expenses that cannot be directly attributed to passenger transportation.
A subsidy is granted to the carrier if, for two consecutive years, the carrier's activity on the railway transport route leads to losses.
The subsidy is set at no more than 50 percent of the carrier's average annual expenses, and the average annual loss amount is calculated in the manner prescribed by the third part of the abovementioned rules.
To note, Azerbaijan transported more than 1.26 million passengers by rail from January through February 2024, which is a growth of 30.8 percent year on year.
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