Azerbaijan, Baku, 18 April / Trend corr S. Aliyev/ "The Azerbaijan State Railway has rejected the new draft project on launching of the fast train to connect Baku with the border of Georgia (503km) due to its high cost," the State Railway reported on 17 April. The State Railway did not divulge the proposed cost.
The new proposal by Korean companies involved in the project envisaged 3-stage implementation. The first stage - reconstruction of the railway section between Ganja city and Georgia, second - reconstruction of the railway section between Baku and Hajigabul and third - reconstruction of the railway section between Hajigabul and Ganja.
The project suggested by the Korean specialist envisages acceleration of the passenger train's speed to 150km per hour, and cargo trains to 120km per hour. Presently, their speed does not exceed 80km per hour.
Previously, Azerbaijani Transport Ministry said that the research shows that from the economic aspect it will be expedient to commence the project in 2010. By that time it will be possible to raise the prices of tickets.
If the project is approved, it will be implemented within 7 years (two years for projecting and five for construction). The same project may be implemented in future for the Russian border as well. The project is planned to be implemented though the joint investments of the State, private banks and companies.
Korean specialists offered three variants of implementation of the project: changing the current situation and acceleration of the train's speed to 100km per hour, acceleration to 150km per hour and acceleration to 160k per hour.
The first variant envisages $2.7bln of investments, the second variant (most preferred) - $3.5bln, the third variant - $4.3bln.
According to the outline cost of the second variant ($3.5bln):
- $177mln will be spent for reconstruction of the road,
- $441mln for reconstruction of 428km of the railway ($1.031mln for every km),
- $317mln for reconstruction of the electric system with the length of 503km ($0.631mln for every km),
- $370mln for reconstruction of the alarm system with the length of 503km ($0.736mln for every km),
- $396mln for reconstruction of the information and communication system with the length of 503km ($0.789mln for every km),
- $810mln for reconstruction of the hanging lines with the length of 503km ($1.610mln for every km).
Direct expenditures are assessed at $2.511bln, incidental expenses -$251mln, advice services - $251mln. The total cost of the project is $3.013bln without VAT or $3.555bln with 18% of VAT.