Kars-Akhalkalaki-Baku railway project will strengthen regional and international integration

The Messenger, Georgia
July 27, 2006

As reported in Svobodnaya Gruzia, the Minister of Transport of
Azerbaijan, Namik Gasanov, stated before the meeting of the heads of
the transport ministries of Azerbaijan, Georgia, Turkey and Kazakhstan,
which is due to take place on July 27 in Astana, that the construction
of Kars-Akhalkalaki-Baku railway project will strengthen regional
and international integration.

"The project will make Georgia, Azerbaijan and Turkey like a united
organism, and in this sense it has great importance at least from
the regional standpoint," he stated, noting that "being a unit of
the infrastructure-transport chain, which links Europe and Asia,
this project has very great importance in view of international
integration as well." Gasanov highlighted that realization of the
project will lead Azerbaijan to Europe via Turkey.

According to him, experts’ assessments show that the project is very
profitable from the economic standpoint also. "It will bring large
profits from freight and passengers transportation," he said. Gasanov
also said that money invested in the project would be recovered in
two or three years of the railway’s operation.

The Azeri minister also said that the project has great political,
as well as economic, importance. "This project is also important in
regard of the settlement of interstate relations," he said.

Touching upon obstacles the project faces, Gasanov stressed that
attempts are being made in this direction by Armenia. "Armenia is
making every effort, even with the help of the U.S. Congress, to impede
this project and prevent its implementation." According to him, Armenia
will not be involved in one of the greatest regional projects because
of their "destructive policy" and "occupation of Azeri territories."

Gasanov also commented on the cost of the project and said that,
according to preliminary data, the cost of this project is USD 400
million. At prior negotiations, the Turkish side agreed to allot USD
200 million for the realization of the project. "The parties have
been continuing negotiations on this issue. Georgia also expresses its
readiness to finance this project, but clarity in this issue will be
made at the negotiations in Kazakhstan," Gasanov stated. According
to him, construction of the project will start in 2007 and will be
completed within two to three years.