The Asian Development Bank expects the feasibility study for the project on financing of the North-South Railway Corridor, as well as development of the railway sector in Azerbaijan to be completed by November. The parameters of the contract and its cost will be preliminary specified in summer, however, the final cost of the project will be determined after the feasibility study is prepared. Currently, the cost of the project is estimated at approximately USD 200 million.
The project review by the experts of the ADB is expected to take place on 25 August 2017. The date of approval of the loan has not yet been named. The loan will be directed mainly to investments in the development of the Baku-Yalama railway line (the border with Russia) within the framework of the North-South transport project and support for the expansion of the autonomy of the management of the Azerbaijan Railways, effective financial restructuring of the company’s obligations, expansion of financial and managerial control, efficiency and accountability in CJSC, as well as business development and corporate restructuring of the department.
Allocation of funds for the realization of the North-South project is envisaged within the ADB’s railway sector development program. Azerbaijan Railways CJSC is the executing agency for obtaining the loan. The North-South transportation corridor will connect Northern Europe to South-East Asia and will serve as a link connecting the railways of Azerbaijan, Iran and Russia.
Share on:
