Azerbaijan, Baku, Jan. 26 / Trend , I.Khalilova/
World Bank Senior Specialist on transport and head of a project group Gerald Olive's visit to Baku began on Jan. 26, the WB Baku Office said on Jan. 26. His visit targets to clear up a situation with realization of the project on assistance in transit on the Azerbaijani railway and trade worth $678 million.
The WB issued $450 million loan to realize the project in March 2008. Reasons of its delay are that the project can be implemented only after adopting the State program on improving the Azerbaijani railway infrastructure (2008-2013) worth 1.2 billion manats. However, at present the state program has not been approved yet.
"The mission intends to clear up a situation with adopting the program and, respectively, realizing the railway project," the government said.
The International Bank of Reconstruction and Development issued loans for 17 years with four-year grace period and libor+0.05 percent of interest rate. The remained part will fall on the Azerbaijani government.
The project covers three components. The first comprises rehabilitating railway economy and just railway section from Baku to the Georgian border, shifting from 3.3 kilovolt constant stream to 25 kilovolt variable stream, replacing signal system due to shift to energy supply system.
Under the second component, it is planned to purchase 50 electric locomotives and under the third - to upgrade and to approach activity of the Railway department to requirements of market economy. At present, the government is examining an issue on its transforming to joint stock company. The project covers four years.
The borrowed funds will be gradually ($235 million) paid off through means of the state budget and $215 million - by own means of the Azerbaijan State Railway (ASR).
The bank's mission will hold negotiations at the Ministry of Transport and ASR.
On Jan. 26, the official exchange rate is 0.8052 manat to $1.
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