Azerbaijan, Baku, 25 April / corr. Trend Khalilova / The German Bank for Development KfW is prepared for the first time to allot Azerbaijan a $500mln enlarged loan for the reconstruction of the Azerbaijani railway, the Azerbaijani Transport Ministry said. The Bank offers to finance jointly with the German Government.
In its offer to the Azerbaijani Government, KfW voiced its readiness to provide 30% supply from Germany and the rest 70% (carriages and rails) from Russia and other countries.
The German bank has not restricted the resources because KfW intends to finance the project on commercial conditions. The Government did not rule out that depending on the talks libor rate might be provided without margin. The Government has voiced its readiness to consider their proposal.
The Government is elaborating its position on financing sources, after the approval of the State Program on improvement of railway infrastructure with a cost of AZN 1.252bln. The program is currently pending for approval at the Azerbaijani President's Apparat.
The program envisages the reconstruction of railway lines running via the north-south and TRACECA transport corridor, renewal of the road economy, electricity supply system, purchase of new carriages, as well as increase in the speed of trains.
On April 25 the official rate of 1 US dollar was AZN 0.8289.
The correspondent can be contacted at: [email protected]