Route of Baku-Tbilisi-Kars project changes
Besides, it has been considered to reconstruct 160km-part of this railway from Marabda till Akhalkalaki. But then, on the eve of these works, it was revealed that this road is absolutely destroyed. Experts think that the road was in such bad situation that the movement was implemented there not by traditional navigation system, but by simple radio contact. Investigations determined that this road was not used for many years, the trains moved by this part only some times in a week. In other words, analyzes show that this part of road is not ready for transportation. Consequently, it was decided not to repair it, but to rebuild completely. “Though it was considered to repair it, but it will impossible to be satisfied only with simple repair. Here must be established electric lines, communication, road management system and etc. All of these have impacted on project’s budget. The funds considered formerly was not enough for the worksâ€, said Mammadov.
Consequently, there occurred need for allocation of additional funds, Azerbaijan allocated additional $575 mln funds to Georgia. Transport Ministry told most part of the allocated funds will be especially spent to rebuild of Marabda-Akhalkalaki part.
Additional funding does not include previously dedicated loan in the amount of $ 200 million. The Azerbaijani government has provided Georgia’s $ 200 million as a loan for 25 years at an annual rate of one percent. Of these, 90 million dollars have already been used. At this time, credit conditions will be higher - 575 million dollars in 25 years at an annual rate of 5%. Agreement on this issue was reached during Baku visit of the Minister of Regional Development and Infrastructure of Georgia Mr. Ramaz Nikolaishvili and CEO of Kartsakhi-Marabda Railway Company Bidzina Bregadze.
This loan will be repaid from profits from the project, after undertaking the railroad. Mammadov says e the railway will be managed by a joint venture by Azerbaijani and Georgian sides. The railroad goes into the complete management of Georgia’s only 25 years later, after full repayment of the loan.
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