The Asian Development Bank (ADB) increased the loan amount from $200 million to $400 million for the International North-South Transportation Corridor (INSTC), as well as for the development of the railway sector of Azerbaijan. ADB has also postponed the terms of consideration of the credit allocation, from 25 August to 22 September 2017. The project fact gathering mission has been postponed from 1-11 August for 28 August-8 September 2017.
The loan will be directed mainly to develop the Baku-Yalama railway line within the framework of the INSTC and support the expansion of the autonomy of the management of the Azerbaijan Railways CJSC, effective financial restructuring of the company’s obligations, expansion of financial and managerial control, efficiency and accountability in Azerbaijan Railways, as well as business development and corporate restructuring of the department.
The North-South infrastructure reconstruction project involves rehabilitation of the 441-kilometer Baku-Yalama section, development of a computerized cargo management system and provision of consulting services for the project.