Azerbaijan Ready to Grant a Credit for a Railway Project to Georgia

Business Materials 12 December 2006 20:19 (UTC +04:00)

Azerbaijan will provide Georgia with a long-term credit. The forthcoming credit will be considered for the implementation of all the necessary work within the project on the opening of railway communication on Kars-Akhalkalaki-Tbilisi-Baku route. Returning debts resulting from carriages will be considered too, a source in the State Railway Company of Azerbaijan told Trend.

The whole volume of the means gained from carriages except operational expenses is expected to be sent to return of the credit.

These funds are expected to be spent on the construction of a missing section of the railway from Akhalkalaki (Georgia) to the Georgian border with Turkey, and on the rehabilitation of the section of the railway -Tbilisi-Akhalkalaki.

The project on the building transport railway corridor Kars-Akhalkalaki-Tbilisi-Baku includes the construction of railway line Kars-Akhalkalaki with the length of 98 km. 56 km of it will be on the Turkish territory and 30 km on the territory of Georgia. Some reconstruction work is needed on railway section Akhalkalaki-Tbilisi. The average value of the projects is estimated at $400 mln.