Azerbaijan, Baku, 21 January / Trend corr. I.Khalilova / The European Bank of Reconstruction and Development (EBRD) and European Investment Bank (EIB) proposed joint financing for the improvement of railroad facilities in Azerbaijan, the Cabinet of Ministers reported.
A joint mission from EBRD and EIB will come to Baku to discuss possible participation in the project.
The total sum of financing is supposed to be $500mln.
Under EIB conditions, the credits will be allocated at the rate of libor+0.5%, and the European Bank - libor+1%.
The aforesaid international institutions are prepared to finance projects to improve rail links in Azerbaijan.
This is the first project Azerbaijan has had with the EIB, as the EIB is to sign the framework agreement on cooperation to regulate banking operations in the country in 2008. The agreement includes obligations of Azerbaijan to the Bank.
The role of the EBRD in cooperation with the EIB is to assess the project, but the funds will be allocated by the investment bank.
The EIB is planning to finance projects under the EU within the framework of the European Neighbourhood Policy.
The EBRD and EIB stated their readiness on joint investments in Russia, Ukraine, Moldova, South Caucasus countries and Central Asia. The EU is ready to direct € 3.7bln or € 500mln yearly to 2013 within the framework of joint financing.