Azerbaijan, Baku, Oct. 23 / Trend /
CJSC Azerbaijan Railways will submit investment decisions to the World Bank till December 1 within the State Railway Development Program for 2010-2014, a statement said.
According to the report, the relevant departments and services urgently must prepare and submit a working plan. The prepared documents will be discussed with the project working group and consulting companies. Then a collective decision will be taken.
Azerbaijani President Ilham Aliyev signed a decree July 6 approving a state program on railway development in Azerbaijan covering 2010-2014.
The program provides for reconstruction of railway, signals, communication systems, new locomotives.
The total cost of the project to support transit by rail and trade hits $673.8 million, of which $450 million fall to the WB loan. The loan agreement was signed this year. The project is part of a state program to improve the railway infrastructure of Azerbaijan (2009-2014) worth 1.2 billion manat.
The credit resources are allocated by the International Bank for Reconstruction and Development (IBRD) for a term of 23 years with a grace period of eight years at a cost - a six-month libor plus spread is changing. Commission on the loan, which will be paid by the borrower, was determined at the level of 0.25 percent. Payments on the loan will be made twice a year - June 15 and Dec.15.