The issue of the 2-nd loan lending to the Azerbaijan State Railway (ASR) by the European Bank for Reconstruction and Development (EBRD) remains on the agenda, the EBRD Baku office head Raymond Conway told Trend. The issue may be treated at the banks board of directors next sitting to be held some weeks later, however, only in the case, Azerbaijan provides state guarantees under the credit.
Conway appreciates positively the wish of Azerbaijan to fund countrys projects on its own resources. For the railway infrastructure development 10 million AZN are envisaged in the state investment program for this year. These funds will be spent on strengthening of the locomotive stock. Purchasing of new locomotives, overhaul and rehabilitation of the existing one is supposed to be made.
EBRD is supposed to allocate a loan in the amount of $30 million for upgrading, reconstruction and renovation of the railways locomotive stock for 15 years with the first years privileged. The credit interest rate is Libor +1%. $20 million ASR intends to receive at the 2-nd stage. These funds will be spent on setting up of two locomotive depots for their overhaul. The loan of $20,2 million under the similar conditions has been allocated to ASR by EBRD in 1999. Its reimbursement is currently underway.