Georgia, Tbilisi, Nov.10 / Trend, N. Kirtskhalia /
The LLC Georgian Railway will continue to build a bypass railway around Tbilisi at its own expense, the company told Trend.
This statement came in response to the decision of the European Bank for Reconstruction and Development (EBRD), which refused to take part in the project financing. The EBRD intended to invest 100,000 euros in this project, but on Nov. 8 it turned it down referring to a previous agreement.
According to the statement, the scheme of project financing has changed and the enterprise will not be able to use the EBRD loan for construction.
"The structure of revenues of the LLC Georgian Railway to date is that the company does not need to attract an additional loan including, any EBRD loan. The project was financed by its own funds and the Georgian railway has not used any loan allocated by EBRD," the company said.
At the same time, the railway department said that the Georgian Railway will continue partner relations with the EBRD.
The LLC Georgian Railway will soon be able to provide information about the structure of funding and course of the project. The total preliminarily cost is 290 million euros and for its funding about 70 per cent of the funds which was supposed to be attracted from the EBRD and European Investment Bank (EIB), while 30 per cent by LLC Georgian Railway.
'Construction work within the project 'Bypass Railway of Tbilisi" is carried out by co-operation with "JV of China Railway 23 rd bureu group co" Ltd and JSC "Khidmsheni" - LLC "Railway Construction", which is also a subsidiary of the Georgian Railway.
Construction work began in October 2010. Transfer of the existing contact and communications network of the three kilometre stretch of the operating railway is underway.