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German Bank Suggests Funds for Railway Project in Azerbaijan

Business Materials 24 January 2008 17:00 (UTC +04:00)

Azerbaijan, Baku, 24 January /corr. Trend I.Khalilova / For the first time, the German Development Bank KfW displayed an interest towards the reconstruction of the railways in Azerbaijan, a source stated at Azerbaijan's Cabinet of Ministers.

In its proposal to the Azerbaijani government, KfW expressed readiness to provide 30% of the supply from Germany and other 70% of the equipment (trains, rails) may be purchased from Russia and other countries.

German Bank does not limit resources because KfW intends to finance the project on commercial terms. The government does not exclude that depending on the talks, the rate of the libor may be without margin. The government already expressed readiness to consider the bank's proposal.

The government will also concretize its position on the sources of financing in this direction after approval of State Railway Infrastructure Improvement Program in Azerbaijan, totaling AZN 1.252bln.

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