Weekly economic review

Last week, Azerbaijan's Ministry of Transport drew an outline list of international financial organizations, credit from which can be drawn in to finance country's railway economy. The World Bank (WB), Asian Development Bank and European Bank for Reconstruction and Development, which will allot a syndicated credit jointly with European Investment Bank (EIB), were selected.

Cooperation with foreign investors in the field of railway economy is envisaged in the State Program on development of railways in 2008-2011, which is expected to be adopted this year. The program envisages reconstruction of locomotive and carriage fleet, improvement of energy economy and signalization and communication systems, reconstruction of railway economy and restoration of other infrastructures. Fifty locomotives are to be purchased (technical consultant is being selected). A section ( 240 km) of the Baku-Boyuk Kasik railway line to Georgia ( 503 km) will be completely reconstructed during the first stage of the project costing AZN 759.

Total cost of the program is $1.4bln, with 40-50% to be allotted from state budget and remaining funds from foreign investors and banks.

At the initial stage, Azerbaijani Government agreed with WB, which can allot up to $450mln on the basis of a protocol on intentions (jointly with Azerbaijan's share the project costs $673.8mln). Though WB has already approved of allocation of a credit, a credit agreement will be signed after President approves the state program.

After that, gross volume of foreign borrowings intended for improvement of railway will be determined, since state program stipulates state budget and Azerbaijan State Railway's own funds as other financing sources.

European Bank stated it can allot $500mln jointly with EIB. Usually, when a project is financed jointly, every side's share comprises 50%-50% and the terms of consolidated credit are simplified. EIB allots credits under libor+0.5% and European Bank under libor+1%.

Asian Development Bank (ADB) offered $550mln for improvement of railway infrastructure. In its proposals, ADB expressed readiness even to soften financing conditions from libor+0.6% to libor+0.2%. Credit resources on the new conditions are proposed concretely for the railway project. They can be provided for a period of 25 years, with period of grace of eight years. In addition, Asian Bank proposes to decrease commission for the service (from 0.35% to 0.25%).

Renewal of locomotive fleet is required due to annual increase in transportations via TRACECA transport corridor, as well as fast beginning of implementation of Kars-Akhalkalaki-Tbilisi-Baku project within North-South transport corridor.

Subscribe to Trend in Google News! Subscribe
Israel's annual inflation up 2.5 pct, highest in nearly decade
Israel's annual inflation up 2.5 pct, highest in nearly decade
Russia, Israel to coordinate efforts at UN to counter history revision
Russia, Israel to coordinate efforts at UN to counter history revision
Shekel gains ahead of September CPI reading
Shekel gains ahead of September CPI reading
Loading Bars
Latest
Trade turnover between Russia, US may hit record this year, says Deputy PM Overchuk
Iran to launch several shipping lines to Russia, Kazakhstan
Iran looks to improve transportation of goods from Khuzestan Province
Russia’s Korona Pay eyes expanding money transfers via Azerbaijan's mobile banking apps
Gas prices in Europe to remain high over next 6 months
Iranian currency rates for October 16
Turkmenistan's electric potential rises after commissioning new capacious power plants
Iran to increase fuel production
UK MP killing was terrorist incident, Met Police say
Representatives of diplomatic corps in Azerbaijan begin visit to Sugovushan
Czech Republic eyes to support improvement of Georgian air transport infrastructure
1,900 more COVID-19 cases reported in Kazakhstan
Biden says those who refuse to testify in Jan 6 probe should be prosecuted
ISIS claims responsibility for mosque attack in Afghan city of Kandahar
Fully vaccinated foreign visitors can enter U.S. starting on Nov. 8
China's Shenzhou-13 crewed spaceship docks with space station module
UK records more than 40,000 COVID cases for third day in a row
Biden says Clinton will be released ‘shortly’ from California hospital
Amazon-owned Twitch says source code exposed in last week's data breach
Israel's annual inflation up 2.5 pct, highest in nearly decade
Africa's COVID-19 cases surpass 8.41 mln: Africa CDC
US shares specific data on cybercrime with Russia, awaits its actions, White House says
Saudi Arabia appoints Al-Rabiah as new Hajj minister
Chronicles of Victory: President Ilham Aliyev interviewed by Turkish A Haber TV channel on October 16, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 16, 2020
Czech PM Babis pledges smooth power handover to opposition
UK MP dies after being stabbed at constituency meeting
China’s Shenzhou-13 manned spacecraft successfully reach orbit
Four migrants dead, 21 missing off Spanish coast
FIA approves schedule for Azerbaijan Grand Prix in 2022
COVID-19 kills 197 more Iranians over past 24 hours
Georgian FM meets Slovenian counterpart
Armenia trying to prepare ground for new provocations against Azerbaijan by spreading fake information - MoD
Azerbaijani FM discusses mine threat in liberated territories with French CNEMA delegates (PHOTO)
Azerbaijan lifts flight restrictions for number of countries
Azerbaijani President signs law "On Independence Day"
EBRD to allocate loan to Turkmen beverage company
Azerbaijan records decline in fixed capital revenues for 9M2021
Turkmenistan, WB talk new areas of co-op
Uzbek-Korean JV announces tender to buy clarifier
Gasoline prices in Georgia increase
Money transfers to Azerbaijan via Golden Crown service grow for 9M2021
Iran looking to develop renewable energy - SATBA
Azerbaijani MoD discusses mine clearing in liberated territories with French delegation (PHOTO)
Iran eyeing increase in trade with Spain
Export-oriented local Georgian company to get benefits within USAID program
Saudi Arabia to ease coronavirus curbs from Oct. 17
Russia, Venezuela developing secured messenger — Rostec
Kazatomprom to look for new ways to bolster nuclear energy for peaceful purposes
Turkmenistan discloses area allotted for sowing winter barley in Dashoguz region
Agreement with Azerbaijan on additional gas supplies aimed at ensuring Turkey's gas reserves – Erdogan
First container train on its way to Azerbaijan's Karabakh (PHOTO/VIDEO)
Uzbekneftegaz receives gas flow from well at Khojikazgan field
Kazakhstan to exempt Caspian oil exports from customs duties
Kazakhstan unveils data on trade with other EAEU states
Volume of financial assets of non-financial corporations in Georgia increases
LUKOIL Uzbekistan to buy ceramic balls for catalysts via tender
Azerbaijan, as victorious country, is ready to normalize relations. We hope that Armenian leadership will not pass up on this historic opportunity - President Aliyev
U.S. administers 405.4 mln doses of COVID-19 vaccines
Кazakh national telecommunications operator opens tender to buy spares
Geostat shares data on revenues of Georgian enterprises for 2020
Azerbaijan shares data on number of vaccinated citizens
Netherlands’ FMO is open to new investments in Uzbek financial sector (Exclusive)
Azerbaijan confirms 1,850 more COVID-19 cases, 735 recoveries
Student of Baku Higher Oil School: ‘I am proud to bear the name of such a historical figure!’
French Renault begins production and commercial activities in Uzbekistan
NEQSOL Holding supports ADA University’s project to restore Gazakh Seminary (PHOTO)
Azerbaijan's agrarian agency discloses volume of issued subsidies in 9M2021
Money transfers to Georgia exceed investments
Russian peacekeepers - guarantors of peace in Karabakh - President Putin
Georgian air cargo transportation decreases
Azerbaijan ready to start talks with Armenia on delimitation of borders - President Ilham Aliyev
TAP helped in reducing European gas market volatility
Armenia has destroyed 16 of the 17 mosques in Shusha - President Aliyev
President Ilham Aliyev: Armenia refuses to provide us with full maps of mined areas
For about 30 years, Armenia, together with Iran, used former occupied territories of Azerbaijan for drug trafficking to Europe - President Aliyev
Illegal Armenian armed forces attempt new provocation against Azerbaijani units
Azerbaijan's State Employment Agency to launch project on financial support of entrepreneurs
President Ilham Aliyev hailed special role of President Vladimir Putin in cessation of hostilities in Karabakh
City of Aghdam was called “Hiroshima of the Caucasus” - Azerbaijani president
Karabakh conflict has been consigned to history - President Aliyev
Azerbaijan takes part in meeting of heads of security and intelligence agencies of CIS
Brent oil price on the ICE exchange up over $ 85/barrel
Iran seeks to transform its ports to transshipment hubs
Microfinance sector in Georgia hopes to rebound from COVID-19, shares forecast
President Ilham Aliyev attends CIS Heads of State Council's session in video conference format (PHOTO)
France's intention to take part in de-mining of Azerbaijan's lands - important, MP says
Death toll climbs to seven following fatal gun battles in Beirut
Azerbaijani ombudsman issues statement on anniversary of shelling of funeral procession in Tartar by Armenian troops
EBRD talks on financing of construction of high-voltage transmission line in Uzbekistan
Israeli companies getting increasingly interested in Russian market — Lavrov
TAP compensated decreasing share of imports from Norway and other LNG to Europe
Azerbaijan’s Parliament adopts bill ‘On Independence Day’
Agriculture goods production increases in Kazakhstan
Turkmenistan’s cotton mill shares export data for 9M2021
Kazakhstan unveils data on local car insurance
Turkmen enterprise reveals volume of oil products shipped to consumers
Uzbekistan approves funding for dozen of scientific projects
Azerbaijan’s Parliament to send congratulatory letter to President Ilham Aliyev, First Vice President Mehriban Aliyeva
Azerbaijani agrarian agency talks female entrepreneurs provided with preferential loans
All news