Azerbaijan, Baku, 4 March / corr Trend I.Khalilova / Azerbaijan's Ministry of Transport received the final feasibility study for the construction of a new international trade port in Alat from the South Korean company JS Engineering & Construction, said the Head of the Ministry's Department for Policy and Economy, Sadraddin Mammadov.
"The Korean side accepted our proposals and remarks, formed on the basis of unification of technical documents with the relevant state bodies of Azerbaijan," Mammadov said
The remarks are connected to the assessment of the cost of the equipment being acquired for the construction of channels.
Calculations by local specialists differ, though the Transport Ministry does not exclude the possibility of a rise in the cost of the port construction, which is currently amid world developments.
Laying the foundation of the port is planned to take place in the first half of 2008. The port will be built in three stages with consideration to its development. The area of the port is large and will be managed with the application of advanced IT-technology.
The first stage of construction of the port will cover the period from 2008 to 2011, the second from 2011 to 2013 and the third stage from 2013 to 2015. At each stage there are plans to establish a definite infrastructure including a place for dry cargo, a container terminal and others.
According to initial assessments, the cost of the project is $396mln, and taking into account the oil terminal - more than $450mln. However, according to recent data, the cost of the first stage increased to $300mln from $225mln.
The Government intends to establish the infrastructure at its own expense, but 80% of the work will be financed through foreign borrowings. JS Engineering & Construction and the Ministry of Finance are currently discussing financial terms. The Asian Development Bank, the European Bank for Reconstruction and Development, the World Bank, American banks and others displayed an interest in financing this project.
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