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KARS-AKHALKALAKI-TBILISI-BAKU RAILROAD PROJECT COST LIKELY TO RISE
PanARMENIAN.Net
08.10.2007 17:06 GMT+04:00
/PanARMENIAN.Net/ The cost of the Kars-Akhalkalaki-Tbilisi-Baku railway
project is likely to rise because the prices of materials and energy
supplies went up, said Ziya Mammadov, Transport Minister of Azerbaijan.
As to the media reports that the 160km Marabda-Akhalkalaki railroad
is in bad condition and will need more funds for rehabilitation,
Ziya Mammadov declined to answer anything.
"Azerbaijan will finance construction of 26km railroad and
reconstruction of 160km Akhalkalaki-Marabda railroad in Georgia,"
he noted.
The preliminary cost of the project was fixed at $422 million, of
which $202 million was supposed to be covered by Georgia and $220
million by Turkey.
The three countries agreed in February to build a rail line linking
Baku, Tbilisi and Kars.
As per the agreement, Azerbaijan undertook to extend a $200mln loan
to Georgia's Marabda-Kars Railroad LLC for 25 years at 1% interest
rate annually.
The loan will be spent on construction of a 29km long railroad in
Georgia, a station in Turkish-Georgian border and rehabilitation of
old railway.
The first installment of $50 million has already been transferred for
the construction. The rest of the loan will be available next year,
APA reports.
PanARMENIAN.Net
08.10.2007 17:06 GMT+04:00
/PanARMENIAN.Net/ The cost of the Kars-Akhalkalaki-Tbilisi-Baku railway
project is likely to rise because the prices of materials and energy
supplies went up, said Ziya Mammadov, Transport Minister of Azerbaijan.
As to the media reports that the 160km Marabda-Akhalkalaki railroad
is in bad condition and will need more funds for rehabilitation,
Ziya Mammadov declined to answer anything.
"Azerbaijan will finance construction of 26km railroad and
reconstruction of 160km Akhalkalaki-Marabda railroad in Georgia,"
he noted.
The preliminary cost of the project was fixed at $422 million, of
which $202 million was supposed to be covered by Georgia and $220
million by Turkey.
The three countries agreed in February to build a rail line linking
Baku, Tbilisi and Kars.
As per the agreement, Azerbaijan undertook to extend a $200mln loan
to Georgia's Marabda-Kars Railroad LLC for 25 years at 1% interest
rate annually.
The loan will be spent on construction of a 29km long railroad in
Georgia, a station in Turkish-Georgian border and rehabilitation of
old railway.
The first installment of $50 million has already been transferred for
the construction. The rest of the loan will be available next year,
APA reports.