Azerbaijan, Baku Trend I.Khalilova / Within a week, the branch of the International Bank of Azerbaijan (IBA) in Georgia will begin financing the initial work on the construction of the Georgian section of Baku-Tbilisi-Kars railway, said the Director General of IBA-Georgia, Samir Veliyev, on 15 August. The funds are required for the formation of Marabda-Kartsakhi Railway LLC which will be responsible for the construction of the Georgian section of the railway up to the border with Georgia.
According to Veliyev, the financing may begin after transfer of the necessary finances from the State Oil Fund of Azerbaijan (SOFAZ). The Fund will transfer monies as requested. The SOFAZ confirmed that it has not yet allocated finances for the project. The SOFAZ is planning to allocate $200mln for the construction of the Georgian section of the railway and part of these finances will be allocated in 2007.
The ceremony for the beginning of construction has been scheduled to take place on 20 September.
In June the Turkish Company of Yuksel Domonik completed preparation of the feasibility study for the project. Azerbaijan International Bank has been selected as agent-bank and the finances may be transferred through its branch in Georgia.
Under the presidential order on 'Arrangements within the framework of Implementation of the project on new railway of Baku-Tbilisi-Kars' a state commission presided by Azerbaijani Transport Minister, Ziya Mammadov, was established. It included the representatives of the Finance Ministry, Foreign Ministry, Economic Development Ministry, as well as the heads of the State Oil Fund, the Railway, and the International Bank of Azerbaijan. The Transport Ministry was appointed the coordinator of the project.