EBRD Postpones Railroad Credit Approval Again

Business Materials 25 August 2006 12:57 (UTC +04:00)

The approval of the $50mln credit by the Council of Directors of the European Bank of Reconstruction and Development, in order to improve the engine stock of Azerbaijan State Railroad, has been delayed until 5 December, Trend reports with reference to an EBRD release. Previously this date was delayed from October 17 to November 7.

The said credit will be received in two segments, firstly for the purchase of engines to the amount of $27mln. The second of $23mln is suggested for the construction of the engine depots in Balajar and Beyuk-Shor as well as the purchase of spares. It is also planned to make an overhaul of 60 engines.

The total cost of the project is $70mln. The project mainly stipulates assistance to Azerbaijans railroads through the purchasing of cargo engines, recovery of old engines and accessories for four warehouses. This will boost transportation of oil and oil products by Caucasian railroad lines to the West and to the East. The project will also raise security and efficiency of Azerbaijan railroad operations.