Azerbaijan corroborates regional leadership

By Victoria Panfilova, a Nezavisimaya Gazeta observer, exclusively for Vestnik Kavkaza

 

Baku has come up with a new large regional project: construction of a fee-based highway along the Silk Road. A modern autobahn would connect the capitals of two states if Georgia finds enough funds.

Spokesman of the Azerbaijani Transportation Ministry Namik Gasanov confirmed that construction of the highway is part of the agenda. “World experience is under consideration. Acceptable projects are under discussion at this stage,” he noted. Azerbaijan has experience in building and exploiting fee-based roads. “For example, the road on the Icherisheher territory is fee-based. In the future, we plan to use this experience on other historical territories,” said Gasanov.

Oktay Akhverdiyev, an ex-deputy minister for the economy of Azerbaijan, an economic expert, told Vestnik Kavkaza that the decision to build the autobahn towards Georgia will most likely be positive. “The issue is being discussed. There is no concrete project yet,” he said. “Construction on the Georgian territory will most likely be carried out using a loan. Azerbaijan will obviously grant a beneficial loan so that the Georgian side would also be interested in building the autobahn. Thus, it may appear that the road will be fee-based all the way to Turkey,” said Akhverdiyev.

The expert reminded that Azerbaijan had experience in granting Georgia beneficial loans. Tbilisi received over $700 million at an interest rate of 1% for construction of the Georgian section of the Baku-Tbilisi-Kars railway. “Azerbaijan invests in the Georgian economy, and the road can be viewed as an example. Should a decision be made, Georgia would get a loan because Tbilisi does not have material opportunities but it has willingness. Azerbaijan has the opportunities and the will to build such road. In general, realization of the project will not be swift because there is no project cost sheet, no documentation, there is only an idea,” said Akhverdiyev.

The project has both backers and opponents. Most drivers would use the old road free of charge, because everyone has different wealth levels to use fee-based roads. Oktay Akhverdiyev emphasized that Azerbaijan had been engaged in big infrastructure construction in the past 5-10 years. “We have spent over $15 billion on roads, bridges. Trunk roads have been 80% completed. Roads are being built between residential areas. But old roads will not be neglected, many of them are as good as fee-based ones,” stated Akhverdiyev.

The expert emphasized that the Azerbaijan-Georgia autobahn would be another large regional project that Armenia missed. “The country has been isolated from the larger regional life for already 20 years. Maybe it is time for them to think about it. We have realized so many projects in the region! About $100 billion has been invested in the Azerbaijani economy in the years of independence. $60 billion of it was direct foreign investment. Armenia could have taken part in all those projects the way Georgia does. It would have had income, improved its infrastructure. Besides, Azerbaijan, Georgia and Armenia have experience in cooperating. In the early 1990s, the European fiber-optic telecommunication project was realized in the region, connecting the region with Europe. Azerbaijan could have objected but it did not, because we calculated that Armenia should somehow exist, live. There is also the TRACECA European project involving Armenia. Yerevan can partake in regional projects now. All it needs to do is free others’ lands,” stated Akhverdiyev.

There are no official proposals or reaction regarding the Azerbaijan-Georgia autobahn in Tbilisi. It would seem that Tbilisi could support the project, especially if it gets an offer to participate under beneficial financial conditions. But the Baku-Tbilisi-Kars railway was a target for criticism of some Georgian economists. Giya Khukhashvili, the head of the Institute for Development of Georgia, told Vestnik Kavkaza: “The autobahn should not be compared with the railway. In my time, I criticized the railway project out of fear that freighting from the East to the West oriented towards the Georgian ports of Poti and Batumi would be redirected after launch of the railway to Turkey and our ports would be less active. The income of the Georgian Railway could have dropped. That was the reason for my admonishments.” In Khukhashvili’s words about the autobahn, it is a good idea, and a beneficial loan for its construction, should Azerbaijan offer one, would very handy. “We need to expand the transport corridor, expand transit opportunities, this is one of the main things Georgia uses to focus world interest on itself,” stated Khukhashvili. In his opinion, the Georgian government will doubtlessly back the Azerbaijani project.

Georgia may support Azerbaijani autobahn projectBy Victoria Panfilova, a Nezavisimaya Gazeta observer, exclusively for Vestnik KavkazaBaku has come up with a new large regional project: construction of a fee-based highway along the Silk Road. A modern autobahn would connect the capitals of two states if Georgia finds enough funds.Spokesman of the Azerbaijani Transportation Ministry Namik Gasanov confirmed that construction of the highway is part of the agenda. “World experience is under consideration. Acceptable projects are under discussion at this stage,” he noted. Azerbaijan has experience in building and exploiting fee-based roads. “For example, the road on the Icherisheher territory is fee-based. In the future, we plan to use this experience on other historical territories,” said Gasanov.Oktay Akhverdiyev, an ex-deputy minister for the economy of Azerbaijan, an economic expert, told Vestnik Kavkaza that the decision to build the autobahn towards Georgia will most likely be positive. “The issue is being discussed. There is no concrete project yet,” he said. “Construction on the Georgian territory will most likely be carried out using a loan. Azerbaijan will obviously grant a beneficial loan so that the Georgian side would also be interested in building the autobahn. Thus, it may appear that the road will be fee-based all the way to Turkey,” said Akhverdiyev.The expert reminded that Azerbaijan had experience in granting Georgia beneficial loans. Tbilisi received over $700 million at an interest rate of 1% for construction of the Georgian section of the Baku-Tbilisi-Kars railway. “Azerbaijan invests in the Georgian economy, and the road can be viewed as an example. Should a decision be made, Georgia would get a loan because Tbilisi does not have material opportunities but it has willingness. Azerbaijan has the opportunities and the will to build such road. In general, realization of the project will not be swift because there is no project cost sheet, no documentation, there is only an idea,” said Akhverdiyev.The project has both backers and opponents. Most drivers would use the old road free of charge, because everyone has different wealth levels to use fee-based roads. Oktay Akhverdiyev emphasized that Azerbaijan had been engaged in big infrastructure construction in the past 5-10 years. “We have spent over $15 billion on roads, bridges. Trunk roads have been 80% completed. Roads are being built between residential areas. But old roads will not be neglected, many of them are as good as fee-based ones,” stated Akhverdiyev.The expert emphasized that the Azerbaijan-Georgia autobahn would be another large regional project that Armenia missed. “The country has been isolated from the larger regional life for already 20 years. Maybe it is time for them to think about it. We have realized so many projects in the region! About $100 billion has been invested in the Azerbaijani economy in the years of independence. $60 billion of it was direct foreign investment. Armenia could have taken part in all those projects the way Georgia does. It would have had income, improved its infrastructure. Besides, Azerbaijan, Georgia and Armenia have experience in cooperating. In the early 1990s, the European fiber-optic telecommunication project was realized in the region, connecting the region with Europe. Azerbaijan could have objected but it did not, because we calculated that Armenia should somehow exist, live. There is also the TRACECA European project involving Armenia. Yerevan can partake in regional projects now. All it needs to do is free others’ lands,” stated Akhverdiyev.There are no official proposals or reaction regarding the Azerbaijan-Georgia autobahn in Tbilisi. It would seem that Tbilisi could support the project, especially if it gets an offer to participate under beneficial financial conditions. But the Baku-Tbilisi-Kars railway was a target for criticism of some Georgian economists. Giya Khukhashvili, the head of the Institute for Development of Georgia, told Vestnik Kavkaza: “The autobahn should not be compared with the railway. In my time, I criticized the railway project out of fear that freighting from the East to the West oriented towards the Georgian ports of Poti and Batumi would be redirected after launch of the railway to Turkey and our ports would be less active. The income of the Georgian Railway could have dropped. That was the reason for my admonishments.” In Khukhashvili’s words about the autobahn, it is a good idea, and a beneficial loan for its construction, should Azerbaijan offer one, would very handy. “We need to expand the transport corridor, expand transit opportunities, this is one of the main things Georgia uses to focus world interest on itself,” stated Khukhashvili. In his opinion, the Georgian government will doubtlessly back the Azerbaijani proje