Azerbaijan considers Czech EximBank's proposals to finance railway project

Business Materials 20 February 2010 14:22 (UTC +04:00)

Azerbaijan, Baku, Feb.20 / Trend , E. Ismailov /

Czech EximBank submitted to Azerbaijani government proposals for financing the project of rehabilitation of Baku - Boyuk Kesik railway section, said on Saturday a source in the company JSC Azerbaijani Railways said.

"These proposals have been sent by Cabinet for Ministers for consideration to the relevant government agencies", the source said.

He said Czech side offers to allocate 215 million euros for the rehabilitation of the road length of 317 kilometers.

Railway segment of the West-East corridor is funded by the World Bank, which has already allocated $450 million.

Total cost of the state program on development of Azerbaijani railways, which has not been approved yet, is estimated at 1,252 billion manats.

Proposals for the reconstruction of railways in the direction of Russian border - Baku - Iranian border (North-South transport corridor) were also received from the Asian Development Bank, European Bank for Reconstruction and Development (EBRD), Germanic Development Bank KfW, the Japan International Cooperation Agency (JICA). Eurobank proposes joint participation with the European Investment Bank (EIB) and willingness to provide totally $ 500 million, and ADB - multi-tranche funding worth $550 million. KfW is ready to finance the upgrade of rolling stock Azerbaijan State Railways, and JICA - railway electronization.