Turkmenistan to get ADB's loan for North-South railway project
Turkmenistan, Ashgabat, June 27 / Trend H. Hasanov /
Turkmenistan intends to get a loan worth $ 125 million from the Asian Development Bank (ADB) within the implementation of a part of the international railway project, expanding the business opportunities in Central Asia, an official Turkmen source said.
Turkmen President Gurbanguly Berdimuhamedov signed a decree by allowing Minister of Railway Transport to conclude a loan agreement (the North-South railway project) between Turkmenistan and the Asian Development Bank totaling $ 125 million for 25 years with a five-year grace period.
The funds will be spent to purchase and install equipment of energy systems, warning systems, communications and logistics in the 311-kilometer-Bereket Buzhun area of the Gyzylgaya-Bereket-Etrek railway.
The "North-South" project will allow Turkmenistan to be connected with neighboring Kazakhstan, as well as the Gulf countries, South Asia, the Russian Federation.
Turkmenistan, bordering with Afghanistan, Kazakhstan, Uzbekistan and Iran, has significant oil and gas reserves. A new branch is expected to shorten the distance necessary for transporting goods from Central Asia to the ports of the Persian Gulf by 680 kilometers.
The opportunity will also arise to provide local people with more jobs, support the development of small enterprises and create opportunities to discover coal, gold and other mineral resources in areas associated with the route.
The loan will hit 75 percent of the total project cost - $166.7 million. According to the terms, the loan is provided for 25 years with a five-year grace period.