Azerbaijan, Baku, 31 July / corr. Trend E.Ismayilov / The international financial institutions can increase financing for the State Development Program of the Azerbaijani Railway for 2008-2011' due to the rise up to AZN 2bln from AZN 1.25bln, Gurban Nazirov, chief engineer of the Azerbaijani state railway said on 31 July. On its part, the Government will increase its financing.
"The international financial organizations should increase the amount of financing automatically because of the rise in the cost of the program," Nazirov said.
The cost of the program increased from AZN 1.25bln to AZN 2bln including the growing inflation and the use of new technology.
The major part of the program will be financed through means, which has been allocated by the Government, and own means of the railway. Financing will be carried by the international financial organizations, especially by the World Bank (WB). Earlier, before the rise in the cost of the program, the WB planned to allocate $450mln for realization of this program.
The realization of these projects are planned to begin from 2009 and to be completed within four years within the framework of this program. Cargo traffic at the Azerbaijani railway will rise by 20-25mln tons a year after realization of this program.
Within the framework of this program, work will be carried out to organize activities of the Azerbaijani railway in the level of the world standards.
The program has been developed and the government is expected to adopt it soon. Main directions of the program include holding corporative reforms at the Azerbaijani railway, improvement of management system, upgrading infrastructure, perfecting normative and legal base and expansion of international relations.
The major part of this program includes realization of infrastructure projects, which envisages reconstruction of railway in line with international standards. These measures will secure the increase in cargo traffic, creation of favorable conditions to convey passengers, the increase of conveyance speed and providing security and timely cargo delivery. Reconstruction work will enable to provide cargo traffic and timeliness of conveyance in the direction of North-South and East-West.
The correspondent can be contacted at: [email protected]