European Bank of Reconstruction and Development Hope to Finance Second Phase of Railroads in Azerbaijan

Business Materials 27 February 2008 18:03 (UTC +04:00)

Azerbaijan, Baku, 27 February / Trend corr. I,Khalilova / European Bank of Reconstruction and Development (EBRD) hopes to participate in the second phase of up gradation of railroad facilities in Azerbaijan, Fransis Delei, head of EBRD representative in Baku, stated.

This is impossible during the first stage, as Azerbaijan has attracted credit from the World Bank in amount of $450mln and total cost of the state railroad development program total $1.4bln.

"The investment railroad program includes very important projects. EBRD is prepared to participate in the first and second stages of the project," Delei said.

European Bank expressed readiness to finance the railroad projects jointly with European Investment Bank (EIB) in amount of $500mln.

Under EIB conditions, credits are allocated on libor+0.5% rate and European Bank - libor+1%.

These international financial institutions are ready to finance any work on up gradation of railroads in Azerbaijan.

EIB plans to finance the projects at the expense of funds of the European Union within the European Neighborhood Policy. Therefore, preference will be given to the regional projects connecting two or three countries.

EBRD and EIB stated about readiness on joint investing in Russia, Ukraine, Moldova, South Caucasus and Central Asia. EU Council is prepared to invest € 3.7bln, within the framework of the joint financing till 2013.

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