Azerbaijan, Baku, 24 January /corr. Trend I.Khalilova / Japanese company Itochu Corporation made an official appeal to the Government of Azerbaijan with a proposal to finance work to improve the railway in the country, a source stated at Azerbaijan's Cabinet of Ministers.
Itochu is prepared to assume the re-establishment of the electricity section of the railway because there are plans to change the system of electricity supply.
These measures require nearly $150-200mln. Financing will be carried out through funds from JBIC (Japanese Bank for International Cooperation). The Bank is prepared to present privilege credits for the project (for a period of 40 years with a 10-year grace period), with rates of lower than 0.75%.
The Government does not exclude the possibility of attracting Japanese financing if the procedures of devising the documents are simplified. "The procedures of the Japanese bank are very long. Therefore, if all documents will be presented within nine months, Itochu's proposal will be accepted," the same source stated.
Within the technical aid of JBIC, Itochu Corporation of Japan engaged in preparing a feasibility study of the project to improve the railway infrastructure from Baku to the Boyuk-Kasik-Georgian border. A speed train will be created within the project.
This project will be realized within the State Railway Infrastructure Improvement Program in Azerbaijan, totaling AZN 1.252bln.