Azerbaijan, Baku, June 28 / Trend E. Ismayilov /
A meeting of the coordinating council will be held in Baku on July 1 within the Baku-Tbilisi-Kars Railway construction project, which is designed to connect the Azerbaijani, Georgian and Turkish railway systems, Azerbaijani Transport Ministry official Sadraddin Mammadov said today.
The meeting will be held with the representatives of the Azerbaijani and Georgian transport ministries.
He said it is planned to discuss the work conducted within the project, the construction of the Marabda station, as well as the purchase of locomotives and high-speed passenger trains from the Spanish Talgo company.
"The budget project for 2011 will be specified during the meeting," he said.
Mammadov said that the additional funds, to be allocated by the Azerbaijani side for construction and rehabilitation work on the territory of Georgia, within the second loan will be enough to complete the work envisaged within the project.
Azerbaijan has allocated $575 million to Georgia for 25 years at an interest rate of five percent additionally to construct the Georgian section of Baku-Tbilisi-Kars railway.
The loan has been allocated to the Kartsakhi-Marabda company. It is not a public debt. This loan will be returned from the profit received as a result of the realization of the project after commissioning the railway.
The first tranche worth $200 million has been also allocated to the Georgian side for 25 years at an annual rate of one percent.
According to amendments made to an agreement which was signed between the Azerbaijani and Georgian governments with regard to work on funding, design, construction, reconstruction and rehabilitation of the Marabda-border with Turkey (Kartsakhi) railway section, the total amount of credit line amounted to $775 million.
The State Oil Fund of Azerbaijan finances the construction and rehabilitation of the Georgian section of the railway.
A new 105-kilometer railroad branch will be constructed as a part of the Baku-Tbilisi-Kars Railway. About 76 kilometers will stretch via Turkey, 29 kilometers through Georgia.
Azerbaijani Transport Minister Ziya Mammadov said earlier that the completion of construction work is planned for late 2012. The corridor will be fully commissioned in early 2013.