New date of approval of EBRD credit for Azeri railway defined

Business Materials 8 June 2006 15:27 (UTC +04:00)

The approval of a $50m credit at the Board of Directors of the European Bank for Reconstruction and Development (EBRD) for the improvement of locomotive economy in Azerbaijan has been postponed from 27 June to 25 July, Trend reports citing the official announcement by the EBRD.

The $50mln credit against governmental security is to be approved by EBRDs Council of Directors on May 27. The credit is issued in two parts. First part of $27mln is purposed for engines purchase, and second at $23mln for establishment of repair depots in Balajari and Beyuk-Shor and purchase of spare parts. It is also suggested to make an overhaul of 60 engines.

Total cost of the project is $70mln. The key objective of the project is to render assistance to the Azerbaijani railway in purchase of electricity freight locomotives, the rehabilitation of electricity maneuver locomotives and equipment for four locomotive storages. It will enable to improve the transportation of oil and oil products, which enjoy high demand, via the Caucasian railway line in the east-west direction. The project increases security and efficiency of railway operations of the ASRD and reduce risk of appearance of oil spills, as 75% of entire railway deliveries fall on the oil and oil products.