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Azerbaijan due to submit railway project details to World Bank

By M. Alkhazashvili
(Translated by Diana Dundua)
Wednesday, February 6
Details of an Azerbaijani railway rehabilitation project were due to be submitted to the World Bank Group (WBG) board of directors yesterday.

The project proposal includes the rehabilitation of locomotives, tracks and the power supply of Azerbaijan’s railway network as well as the introduction of an international-standard accounting system.

The WBG will consider advancing a USD 450 million loan toward the project, which is expected to cost a total of USD 673 million. A further USD 224 million is expected to come from the Azerbaijani government and the state rail company ADDY, which will implement the project.

Meanwhile, the EBRD board of directors will consider advancing a USD 55 million loan for the project on February 19.

The East–West section of the rail network will be rehabilitated at a cost of USD 373 million and USD 283 will be allotted for purchasing 50 new locomotives. Modernization work will cost USD 14 million and project management is expected to cost USD 2 million, according to the news agency Regnum.