Baku, Fineko/abc.az. Asian Development Bank (ADB) is ongoing efforts of assistance to the Azerbaijani government in financing making of State Railway Development Programme for period until 2012.

The Bank informs that with this purpose the ADB Board of Directors endorsed technical assistance to the Azerbaijan government.

“ADB awarded a $1 million grant for preparing the Railways Sector Development Program,” it was reported.

Earlier the government and ADB achieved a principal agreement on a $550 million loan for Azerbaijan State Railway Company (ADDY).

Preliminarily the parties agreed that ADB will prepare a project for ADDY upgrade on north-south segment (from the border of Azerbaijan with Russia to the border with Iran). But ADB was also ready to fund any works within State Railway Development Programme for period until 2012. This flexibility can be useful in case the Draft Program is re-considered and some its costs reduced.

The Bank could sponsor operations under Multitranche Financing Facility (MFF) scheme.

The Ministries of Transport, of Finance and of Economic Development of Azerbaijan were commissioned to work over all proposals jointly, select the most attractive ones and propose a joint initiative to the government.

The Azerbaijani government is examining investors for reconstruction of railway tracks via Russia-Baku-border with Iran (North-South transport corridor) within State Railway Development Program 2008-12. the European Bank of Reconstruction and Development (EBRD) and Asian Development Bank are to ready to finance this project. Both EBRD and ADB are ready to finance by $500 million for these ends. EBRD is going to give funds jointly with European Investment Bank (EIB) with $500 million and German bank KfW.

The railway segment of West-East corridor will be financed by World Bank Group ($450 million) and as it is expected by Japanese Bank for International Development ($260 million). German bank KfW is ready to fund renewal of rolling stock of Azerbaijan State Railway Company (ADDY).

The State Program is estimated at AZN 1.2 bn (more than $1.5 bn).

16.01.2009 10:13