Azerbaijan, Baku, 15 January /corr. Trend I.Khalilova / Azerbaijan's Ministry of Transport suggested to the South Korean Company JS Engineering & Construction to devise a feasibility study for the construction of a new international trade port in Alat, said the Head of the Ministry's Department for Policy and Economy, Sadraddin Mammadov.
"We presented proposals and remarks to the Korean side," Mammadov said.
The remarks are connected to the assessment of the cost of the equipment being acquired for construction of channels.
Laying the foundation of the port is planned to take place in the first half of 2008. The port will be built in three stages with the consideration of its development. The territory of the port is large and is managed with the application of advanced IT-technology.
The first stage of construction of the port will cover the period from 2008 to 2011, the second from 2011 to 2013 and the third stage from 2013 to 2015. At each stage there are plans to establish a definite infrastructure including a place for dry cargo, a container terminal and others.
According to initial assessments, the cost of the project is $396mln, and considering the oil terminal - more than $450mln. However, according to recent data, the cost of the first stage increased to $300mln from $225mln.
The Government intends to establish the infrastructure at its own expense, but 80% of the work will be financed through foreign borrowings.
According to Mammadov, JS Engineering & Construction and Ministry of Finances are currently discussing financial terms. The Asian Development Bank, the European Bank for Reconstruction and Development, the World Bank, American banks and others displayed an interest in financing this project.