CHINA AND KAZAKHSTAN JOIN THE KARS-AKHALKALAKI-TBILISI RAILROAD PROJECT

Regnum, Russia
Aug. 29, 2006

In an interview to Zaman, Turkish Transport Minister Binal Yildirim
says that China and Kazakhstan have joined the project to build Kars
(Turkey)-Akhalkalaki (Georgia)-Tbilisi-Baku (KATB) railroad. Radio
Liberty reports Yildirim to say: "This project is the modern version
of the Silk Road. It will allow one to get from Kars to China or Hong
Kong via Kazakhstan. In the future this railroad will be connected
to the Marmara railroad (a road running under Bosporus) – a project
that will allow one to get from London to China." Yildirim says that
Turkey’s share in the KATB is $250mln. The railroad will be built in
two years to carry almost 20mln tons of cargo against the 18mln tons
presently carried via all Turkey’s railroads together.

Yildirim says that the project was developed as early as 1960s but
"has been delayed for years because of contradictions with Armenia"
and Turkey’s eastern regions have been close for a long time. "As
a result, the Caucasus and Asian states were close for railroad
operations to Europe," says Yildirim. He notes that the KATB project
has good prospects. "The 79-km section till the Georgia border
will be financed by Turkey, the 25-km section in Georgia by the
Georgian authorities. The Tbilisi-Baku section will be modernized,"
says Yildirim.

The engineering work was started in 2001 and, at the initial stage,
the project was estimated at $463mln. "Even China offered a soft
credit for the project. Particularly, they said they were ready to
lend money for 13 years at 5.5% a year, with a grace period during
the first three years. However, the Turkish authorities declined
their offer as they were unwilling to guarantee the credit," says
Yildirim. He notes that the project will substantially change the
face of the region and will help it to prosper.