Azerbaijan purchased new engines

Business Materials 14 June 2006 16:56 (UTC +04:00)

The engines Azerbaijan purchased in Russia are arriving in the republic in short, governmental officials told Trend.

Two of them are electric and two locomotives. They are purchased at AZN 10mln. The tender on this project has been awarded to Uraltrade and Dorekhkomplekt.

It is also suggested that EBRD will issue a $30mln credit for upgrade and reconstruction of railroad engine stock for 15 years (first four years on preferential terms). Interest rate on credit is Libor +1%. Another $20mln ASR will receive under the second phase that anticipates construction of two repair depots in Baku. European bank already issued $20.2mln credit on such terms in 1999.

The engine stock upgrade is necessary in a view to annual increase of amount of transportation along TRACECA and the soon launch of such projects as opening railroad communication Kars-Ahalkalaki-Tbilisi-Baku and North-South.