EBRD: A new Delays Considering Credit for Azeri Railway
The consideration of the approval of a credit of the European Bank for Reconstruction and Development (EBRD) for the establishment of a locomotive servicing venue at the Bilajari and Boyuk Shor depots, as well as purchase of spare parts for the Azerbaijan State Railway Department (ASRD) has been postponed from February 6, 2007 to March 20, 2007, Trend reports citing EBRD's official announcement.
The work over the development of the project is financed by the British company Trust Fund, which provided EUR 49,950.
Earlier, the Azerbaijani Government refused to finance the purchase of locomotives at the expense of the EBRD credit. $27mln of the total $50mln loan was allocated for the purchase of locomotives, while the second tranche of $23mln was for the establishment of locomotive servicing venue at the Bilajari and Boyuk Shor depots, as well as the purchase of spare parts for the ASRD.
Despite the exclusion of the first component, Azerbaijan is still counting on a $30mln credit of the EBRD. The increase in the price of the second component is linked with rises in prices, particularly the price of construction materials.