Date for approval of loan for ASR by EBRD set

Business Materials 17 December 2005 14:21 (UTC +04:00)

Approval of the $50 million loan for the improvement of the locomotive business unit of the Azerbaijan State Railway (ASR) by the European Bank for Reconstruction and Development (EBRD) is scheduled for 21 March 2006 at the bank’s Board of Directors, the government told Trend.

The project’s total amount is $70 million. The project’s basic goal is to assist the railways of Azerbaijan to acquire electrical freight locomotives, rehabilitation of electrical shunting locomotives and equipment for four locomotive depots. It will enable to transport oil and oil products with their growing demands through the Caucasus Railway in east-west bound. The project will increase also the safety and efficiency of the ASR railway operations and diminish the risk of the oil spills cases, as the railway transport carries up to 75% of the oil and oil products.

For involvement of the consult the German Federal Ministry of Economy allocated grant in the amount of EURO 500 000. The consultants’ responsibilities are checking cost estimates by purchasing, preparation of technical specifications for tenders, preparation of pre-qualification documents, involvement in the contract making and monitoring the progress of works.

The EBRD loan of $50 million will be received in two tranches. The first tranche will go for purchasing of locomotives. EBRD will allocate $ 27 million for these purposes. The second tranche of $23 milllion is designed for the locomotives service bases at the depots in Baladjari and Beyuk-Shor, as well as buying of spare parts. Capital overhaul of 60 electrical locomotives and diesel locomotives is also planned.