The Azerbaijan State Railway (ASR) under the Transport Ministry of Azerbaijan submitted technical proposals to the European Bank for Reconstruction and Development (EBRD) on projects which it plans to implement within the EBRD second loan. After assessment of the proposals submitted EBRD is expected to make a decision on allocating the loan to ASR, the ASR Administration told Trend. The loan is supposedly to be allocated this year.
It is also suggested that EBRD will allocate the loan of $30 million for up-dating, rehabilitation and renovation of the ASR locomotive stock for 15years with the first four privileged years. The loan interest rate is Libor +1%. $20 million more ASR plans to receive within the second stage.
These funds will be spent for establishing two depots for locomotive repair in Baku. The loan of $20,2 million under the same conditions have been allocated by EBRD to ASR in 1999 year.