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Azerbaijan and Georgia sign new loan agreement

01 July 2011 10:24 (UTC +04:00)

The document was signed by Azerbaijanâ€™s Transport Minister Ziya Mammadov and Director of Georgia’s Marabda-Kartsahi Railway Company Bidzina Bregadze.

According to Georgian press, the total sum of loan makes $ 575 mln.

The loan is granted with annual 5% for 25 years. This means will be transferred to Marabda-Kartsakhi Railways Company in stages. This company is Georgian executor of railway line. The funds will be spent to restoration of existing highway from Tbilisi to Akhalkalak. Azerbaijan has already granted $200 mln within this project and Baku-Tbilisi-Kars Railway line is expected to launch at the end of next year.

Note that, the final document among Azerbaijan, Georgia and Turkey on BTK construction was signed on February 8, 2007. Construction works have started on November 21, 2007. Azerbaijan has granted $200 mln (for 25 years in annual 1% interest) to Marabda-Kartsakhi-Railways Company. Total worth of the project is over $600 mln.

Construction of Georgian Part of railway is conducted by Azerinsaatservis.

76 km-new railway line will be launched from Georgian border to Kars in Turkey.