Azerbaijan, Baku, July 14 / Trend I.Khalilova /
The Azerbaijani government plans to invest 1 billion manat to improve railway infrastructure in the medium term, World Bank Senior Infrastructure Specialist, Transport Program Team Leader for Central Europe and the Baltic Countries, and Team Leader for the Rail Trade and Transport Facilitation Project in Azerbaijan Gerald Ollivier said in Baku.
"According to our estimates, which coincide with the Azerbaijani government's calculations, investment needs in this sector are around $1.2 billion," he said. "These requirements may seem large, but they must be viewed in the context of the income brought by the railroad."
The Azerbaijani Railway earns about 200-250 million manat per year, Ollivier added.
Of the total investment, about $450 million are allocated as credit to a project promoting rail transit and trade in Azerbaijan. WB funds will be used to electrify the railway along a stretch running from Baku to the Georgian border and also to purchase locomotives. The project's total cost is estimated at $673.8 million.
"The WB loans are considered in the context of the Country Partnership Strategy, which takes into account the country's needs in other sectors such as education, health and road construction," he said.
Azerbaijani President Ilham Aliyev signed a decree July 6 approving a state program on railway development in Azerbaijan covering 2010-2014.
The program aims to continue reforms and to improve the legal framework necessary to create a broad range of opportunities for commercial railway, to take measures to update railway infrastructure meeting current requirements, and to increase cargo transportation.
The program also aims to improve the quality of cargo and passenger transportation and security by introducing scientific and technological advances and new technologies in transport infrastructure.
According to the program, institutional reforms will be made at Azerbaijan Railways in 2010-2011 to prepare and adopt rules for cargo and passenger transportation, railway use, and traffic safety. A law will also be prepared on railway transport.
The program will be financed by Azerbaijan Railways and domestic and foreign investments in addition to technical assistance and grants from other sources.
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