Reconstruction on the Baku-Tbilisi-Kars railway increased in price. The project is to connect the railway systems of Azerbaijan, Turkey and Georgia. Azerbaijan plans to provide additional financing, Azerbaijani Deputy Transport Minister Musa Panakhov said, Business Georgia reports.
The main problem is negotiating the new credit tranche for Georgia. Additional financing will be equal to $500 million.
Panakhov noted that some sections of construction were stopped over heavy snow.
Azerbaijan provided $200 million from the State Oil Fund for construction of the Georgian section. The credit will be paid off in 25 years, at a rate of 1% annually.
The second credit will have an increased rate of 5%.
The Baku-Tbilisi-Kars project involves construction of a new 105-kilometer railway branch, 76 km of the branch will run through Turkey, 29 km — Georgia. Georgia is also reconstructing the Akhalkalaki-Marabda-Tbilisi railway branch with a capacity of 15 million tons of cargo annually. Akhalkalaki will have a system of switching from the Georgian railway line to the European.
Azerbaijani Transport Minister Ziya Mamedov said earlier that construction activities will be completed in the first half of 2012. The sides are trying to speed up the project and complete most work in late 2011.
The maximum capacity of the corridor is expected to reach 17 million tons of cargo annually. At the first stage the line will transport 1 million passengers and 6.5 million tons of cargo.
