EIB Demonstrates Interest in Financing Railway Projects in Azerbaijan
Azerbaijan, Baku /corr. Trend I.Khalilova / The first project that may be financed by the European Investment Bank (EIB) in Azerbaijan may regard to the railway improvement. The EIB suggested $500mln for the railway projects in Azerbaijan, a source stated in Azerbaijan's Ministry of Transport.
Currently the EIB and Government of Azerbaijan are preparing to sign a framework agreement on co-operation. After this, talks will begin on concrete projects.
EIB plans to finance projects at the expense of the funds of the European Union within European Neighborhood Policy. Therefore, preference will be given to the regional projects connecting two or three countries.
EIB intends to participate in joint projects with the European Bank for Reconstruction and Development (EBRD) which also offered $500mln for railway projects in Azerbaijan, the same source said.
After approval of the State Railway Infrastructure Improvement Project (2007-2011), the Government intends to determine the concrete amounts and sources of the foreign borrowings for the development of Country's railway.
In addition, this year the State Railway Department of Azerbaijan directed AZN 20mln to towards developing railway and possibly the same amount will be allocated in 2008.