Azerbaijan, Baku, Nov. 5 /Trend A.Akhundov/
Slow mastering of funds in the frame of the WB project to facilitate rail transit and trade (Railway Trade and Transport Facilitation Project) in Azerbaijan was due to the necessity of making a decision on its restructuring, WB Acting Country Manager for Azerbaijan Saida Bagirli, told Trend on Monday.
Bank provided $450 million to Azerbaijan for funding of this project. Some $66 million were mastered.
World Bank and the Government of Azerbaijan have already started the work on the project restructuring.
"The project is almost restructured; the final stage of this work is being carried out. Accordingly the process of the means mastering is carried out. There were delays due to the need to make a decision on the restructuring, now everything is in its place" Bagirli said.
The purchase of locomotives will be excluded in the frame of restructuring.
"Initially, the project involved the purchase of locomotives, however, electrification, the creation of modern signaling system demanded more money than planned. So we decided to redirect the funds provided by the bank, on these components. Acquisition of locomotives will be made at a later stage - at the expense of the state or from other sources that will be defined by the government," the bank said.
The credit agreement between the government and the WB was signed in December 2009. The total cost of the project promoting rail transit and trade is $ 795 million with $ 450 million falling to the share of WB loan. The project is part of a state program on improvement of rail infrastructure in Azerbaijan (2008-2013) with a total cost of 1.2 billion manat.
WB credit resources are provided through the International Bank for Reconstruction and Development (IBRD) for a term of 23 years with a grace period of eight years. The commission on the loan, which will be paid by the borrower, is set at 0.25 per cent. Mortgage payments will be made twice a year, on June 15 and December 15.