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September 24, 2013

WB approves $220m additional loan to implement railway project in Azerbaijan

The World Bank (WB) has has agreed to provide an additional loan of $220m to implement the Rail Trade and Transport Facilitation Project in Azerbaijan, according to Trend.

By admin-demo

The World Bank (WB) has has agreed to provide an additional loan of $220m to implement the Rail Trade and Transport Facilitation Project in Azerbaijan, according to Trend.

The project agreement was signed by Azerbaijan Finance Minister Samir Sharifov and WB head in Azerbaijan Larisa Leshchenk. The bank has previously provided $450m in funding for the project.

The additional loan, which was approved by WB executive directors in June 2013, will be used to improve the service on the East-West Main Line from Baku to the Georgian border.

"Azerbaijan intends to achieve growth in freight volumes in the Central Asian and Black Sea regions through the development of railways."

The objective of the additional loan is also to improve the competitiveness, financial sustainability, operating and cost efficiency, and capacity of the railways, particularly along the East-West transport corridor.

The loan will also cover costs associated with the increased cost of power conversion and signalling works along the East-West Main Line, together with additional activities under the institutional modernisation component.

Azerbaijan intends to achieve growth in freight volumes in the Central Asian and Black Sea regions through the development of railways.

The project supports the implementation of Azerbaijan’s national railway development programme as a transit link between Central Asia and Europe, helping the economy to diversify away from oil extraction.

The World Bank has so far financed 54 projects worth over $3bn in Azerbaijan since the country joined the bank.

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