Ziya Mammadov: РђSR may be turned into Joint Stock Company

Business Materials 20 December 2005 19:01 (UTC +04:00)

The Azerbaijan State Railway (ASR) may be turned into the Joint Stock Company (JSC). The Transport Minister Ziya Mammadoc said on 20 December, that the reform of the transport sector is envisioned in the state program on development of this sector, Trend reports. В"However, a definite period of time is needed for turning ASR into JSC, as the Railway is a very complicated system.

The European Bank for Reconstruction and Development (EBRD) proposes to conduct reforms in the railway structure, in particular, to set up JSC for allocating the loan of $50 million for the ASR locomotive business unit rehabilitation project.

However, the Minster thinks, Azerbaijan may receive the loan without implementing the EBRD proposals. В"The active work is currently underway for receiving the credit. The country’s President gave relevant instructions and receiving of the loan will be realized”, Mammadov said.

Approval of the EBRD loan is scheduled at the Board of Directors on 21 March 2006. The project’s total amount is $70 million. The EBRD credit will be allocated in two tranches.