The mission of the World Bank (WB) headed by Gerald Olivier, the WB Chief Transport Specialist and Head of the Project Group, has launched negotiations on a project on assisting transit via Azerbaijan's railways aiding the trade of the country.
Trend has been told by the WB Baku Office, meetings are expected to be held in the Azerbaijani Transport Ministry and the State Railway Company to discuss technical aspects of the project, and issues of reforming the structure of management in the Railway Company. This will be considered by the Cabinet of Ministers, Finance, and Economic development Ministries of the Country. Christian Petersen, the WB Chief Specialist for South Caucasus, is expected to join preparations for the project as well. Notably, his visit to Baku is expected to start tomorrow, on January 30th.
The project envisages restructuring the passenger and load carriage via the railways, bringing the financial management of the Azerbaijan State Railway Company in accordance to international standards, as well as increasing the ability to compete, improving efficiency and commercial orientation.
His visit will last until February 8th. The preparation for the project started at the beginning of 2006. Consultants engaged in preparing a feasibility study have been involved in this activity at the expense of a grant worth of over $900.000 allotted by Japan's Government's PHRD Fund.
According to the WB Partnership Strategy with the Azerbaijani Government for 2007-2010, $80 mln is expected to be granted for the project on assisting transit via the Azerbaijani railways and the trade of the country. It is expected to be approved by the WB Board at the end of the financial year of 2007 (end of June 2007). The forthcoming credit will be granted on the conditions of the International Bank for Reconstruction and Development (IBRD).