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Baku-Tbilisi-Kars railway project goes up two times

20 May 2011 11:13 (UTC +04:00)

According to Azerbaijan Ministry of Transport, as the results of discussions between Georgian delegation and Transport Ministry, the sides have signed a protocol on amendments and annexes in agreements between Azerbaijan and Georgia on financing, projection, construction, rehabilitation, reconstruction and exploitation of railway area up to Marabda-Turkey border within the realization of Baku-Tbilisi-Kars railway line.

According to protocol, the sum to be allocated by Azerbaijani side for projection, construction, rehabilitation-reconstruction works, including financing of construction of relevant infrastructure objects has been increased to $775 mln. This sum will be allocated via authorized bank and paid in two tranches. First tranche will make $ 200 mln for 25 years with 1%-annual rate, the second - $575 mln for 25 years with 5%-annual rate.

The sum within the first tranche covered conducted works on this project from 2007 so far. Allocation of second tranche is related to rising of prices of goods-materials in the world market, revaluation of all details of current situation of Marabda-Kartsakhi railway, conduction of works in a severe climatic condition. Ministry says, Azerbaijani and Georgia sides decided to establish joint venture for conduction of works more quickly and qualitative, increase of effectivity of cargo transportations.