Initial Cost of Speed Train Project in Azerbaijan Announced
Azerbaijan, Baku / corr. Trend S.Aliyev / The representatives of the Korean Railway Department held a presentation on the speed train from Baku to the Georgian border for a total of 503km, at the Transport Ministry of Azerbaijan.
The Deputy Transport Minister of Azerbaijan, Musa Panahov, said that the research shows that the project is expedient and building is to be commenced in 2010. "The proposal to realize the project from 2010 is linked with the issue that at that time, the material opportunities of the citizens are expected to improve. As you know, prices increase in speed trains," the Minister said. The project will be realized within 7 years. In the future, the same project will possibly also be linked to route to Russia. Panahov said that realizing the project will positively affect the environment and will translate into fuel conservation.
The Korean specialists offer three variants of the project: changing the existing situation and increasing the speed up to 100 km/h, increasing the speed up to 150 km/h, or increasing the speed up to 160 km/h.
The first variant envisages allocating investments in the amount of $2.7bln. In the second case, the investments amount to $3.5bln. The third project envisages investments of the amount of $4.3bln.
According to the initial cost of the second variant in amount of $3.5bln:
- $177mln is intended to be spent on reconstruction of the lines,
- $441mln for reconstruction of the route, 428km in length,
- $317mln for the electricity system, 503km in length,
- $370mln for a signal system, 503km in length,
- $396mln for information and communications, 503 km in length, and
- $810mln for overhead lines, 503 km in length.
The direct expenditures are estimated at $2.511bln, unforeseen expenditures at $251mln, consultation services at $251mln. The cost of the project (without VAT) is $3.013bln, but together with 18% VAT - $3.555bln.