Baku- Tbilisi-Kars railway under rapid construction

Business Materials 28 November 2013 18:00 (UTC +04:00)

Baku, Azerbaijan, Nov. 28

By Emil Ismayilov - Trend:

Construction of the Baku- Tbilisi-Kars railway is moving very quickly, spokesman for Azerbaijan Railways Nadir Azmammadov told Trend today.

According to Azmammadov, the operations on creating new railway are being conducted in accordance with the work schedule, in particular, laying a 4.3 kilometer tunnel between Turkey and Georgia.

"This large and important project is planned to be commissioned during 2014," Azmammadov said. "The necessary work is being conducted for its implementation."

Turkish Minister of Transport, Shipping and Communications Binali Yildirim previously said that the Baku -Tbilisi -Kars railway construction project will be completed no later than late 2014.

Azerbaijan has allocated a $775 million preferential loan to Georgia for the construction and reconstruction of the Georgian section of the Baku-Tbilisi-Kars railway.

Tranche A, worth $200 million, has been allocated for 25 years at one per cent rate annually (has been covering operations on project since 2007), and tranche B, worth $575 million has been allocated for 25 years at a five percent rate annually.

The need in allocation of tranche B was connected with the increase in world prices of construction and raw materials, revaluation of Marabda-Kartsakhi branch railway's current condition, conducting operations in unfavourable weather conditions and others.

It is expected that annually 30 million tons of cargo will be transported via the Baku-Tbilisi-Kars railway, which will have a direct access to the European railway network.

The Baku-Tbilisi-Kars railway will increase the flow of containerized, bulked and other types of cargo from Asia to Europe.