Azerbaijan, Baku / corr Trend I.Khalilova / At the and of January 2008 the World Bank is planning to hold with the Azerbaijani Government official talks on the project of assistance to transit via railway and trade, with the budget of $670mln, WB office in Baku said.
The World Bank (WB) confirmed its readiness to allocate $450mln for the development of railway infrastructure of Azerbaijan.
Financing the project will be implemented through credit resources of the International Bank for Reconstruction and Development, which does not limit its loan to be allocated for 20 years with 4 years grace period.
WB plans to approve the project at the meeting of its Board of Directors by the end of June 2008.
Through the WB grant, the consultants from Pabeco/Feneka/Sulaco consortium concluded the marketing plan.
The project includes three components. These are the rehabilitation of railway economy, namely, the railway section ranging from Baku to the Georgian border, transition from 3.3 KW-permanent current to 25 KW-changeable current, replacement of signal system in connection with the transition to he electricity supply system.
Within the framework of the second component it is planned to acquire 50 electric locomotives and the third the upgrade and adjusting its activities of the Azerbaijan State Railway to the requirements of the market economy. The Government is considering the reformation of this organization into a joint-stock company.
The 4-year project is implemented under the State Program on railway infrastructure development in Azerbaijan (2007-2012), with the total budget of AZN 1,252bln.