New date of meeting of Board of Directors of EBRD on credit to Azerbaijan Railways Department was defined

Business Materials 28 June 2006 16:35 (UTC +04:00)

The confirmation of $50mln credit by the Board of Directors of European Bank for Reconstruction and Development (EBRD) for the upgrade of locomotive economy of Azerbaijan railways was transferred from July 25 to October 17, Trend reports with reference to the statement of EBRD.

The $50m credit of EBRD will be received in two tranches and the first tranche is intended for the purchase of locomotives. For this purpose, the bank will disburse $27m, and the second tranche totaling $23m is intended for the creation of the service base of locomotives in Baladjarkh and Beyuk-Shor depots, as well as purchase of spare parts. Besides, it is intended to carry out the capital repair of electric locomotives and diesel locomotive.

General cost of the project in $70m. The primary goal of the project is to assist the railways of Azerbaijan in receiving electric cargos of locomotives, restoring the electric switch locomotives and ensuring four depots of locomotives. It will allow to improve the transportation of oil and oil products through Caucasus railways to east-west direction. Besides, the project will promote the security and effectiveness of railway operations of Azeri railways and decrease the risks appeared with the oil transportation.

According to the information provided by the Ministry of Transport of Azerbaijan, at the moment, the republic itself possesses the means for the realization of such projects. Azeri State Railways Department has concluded a contract on acquisition of five locomotives from Georgia. The cost of the contract is AZN 10 mln.