Japanese Bank May Finance Railway in Azerbaijan
Azerbaijan, Baku, 17 May / corr. Trend I. Khalilova/ The Azerbaijani government is prepared to attract the loan of the Japanese Bank for International Cooperation (JBIC) to update electricity annex of the railway if the loan agreement is signed in 2008, a source in the government said. Though five-year State Program on Improving Railway Infrastructure has not been approved yet, the Government plans to complete the construction of the Azerbaijan's section in Baku-Tbilisi Kars railway in time.
JBIC has stated that it is prepared to grant $260mln for Azerbaijan for the electrification of the railway. The energy system is expected to be updated and to transfer from stable to alternating current within the measures to improve railway infrastructure from Baku-Boyuk-Kasik up to Georgian border.
Bank is going to grant soft credit for 40 year period with grace period of 10 years and less than 0.75% interest rate.
"The procedures of the Japanese Bank are long enough, therefore, if all the documents including loan agreement will be introduced and signed by the end of the year, the Bank's proposal will be accepted, a source said.
The Japanese Bank plans to act with the Japanese Itochu Corporation who has already took part in the development of the project on improving of the railway infrastructure from Baku-Boyuk-Kasik up to Georgian border within the technical assistance of JBIC. An express train is expected to be launched within the project.
This project will be realized within the State Program on Improving Railway Infrastructure of Azerbaijan (2007 to 2012) worth AZN1.252bln.
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