Baku, Azerbaijan, Sept. 11
By Maksim Tsurkov – Trend:
The Asian Development Bank (ADB) mission has conducted assessment of the work carried out within the Azerbaijan Railway Sector Development Program, ADB’s Baku office told Trend Sept. 11.
The mission was in Azerbaijan Aug. 28-Sept. 8.
“Representatives of the assessment mission held political and technical consultations and discussions with the Azerbaijani government regarding the Azerbaijan Railway Sector Development Program and the International North–South Transport Corridor,” the office said.
ADB plans to allocate $400 million as a loan for the International North–South Transport Corridor, as well as for the development of Azerbaijan’s railway sector.
The project’s review is planned for September 22, 2017. Loan approval date hasn’t been set yet.
Funds will be allocated in two tranches - $300 million and $100 million, respectively. Meanwhile, technical assistance will be provided in the amount of $1 million.
The loan will be mainly used as investment in the development of Baku-Yalama railway section (border with Russia) as part of the North-South transport project and as support for expanding the management autonomy of the Azerbaijan Railways CJSC, effective financial restructurization of company’s liabilities, expansion of financial and administrative control, efficiency and accountability of the company, as well as the development of business and corporate restructurization of the railway authority.
The infrastructure reconstruction project as part of the North-South envisages the restoration and rehabilitation of the 441-kilometer Baku-Yalama [dual-track] section, the development of a computerized cargo management system and the provision of consulting services as part of the project.
Azerbaijan Railways CJSC is considered to be the loan executor.
The International North-South Transport Corridor is meant to connect Northern Europe with Southeast Asia. It will serve as a link connecting the railways of Azerbaijan, Iran and Russia. It is planned to transport 5 million tons of cargo per year at the initial stage and over 10 million tons of cargo in the future via the corridor.
ADB was founded in 1966 and has 67 member states. The bank’s headquarters is located in Manila, Philippines. Azerbaijan became an ADB member on Dec.22, 1999. The country accounts for 0.5 percent of the bank’s capital.
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