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Turkey: Kars-Tblisi-Baku Railway Agreement To Be Signed

TURKEY: KARS-TBLISI-BAKU RAILWAY AGREEMENT TO BE SIGNED

Railway Market Magazine, Poland
Feb 7 2007

Turkey, Azerbaijan and Georgia, three Caucasus countries, are
set to sign a key agreement next week for the construction of the
Kars-Tbilisi-Baku (KTB) railway, an ambitious project that will unite
the railway systems of Europe and Central Asia. When the project is
completed a train from London could reach China without any stop.

The KTB project aims to join the railroad networks of Georgia,
Azerbaijan and Turkey to further strengthen cooperation between these
three countries.

Many analysts have described the project as important as the
Baku-Tbilisi-Ceyhan (BTC) oil pipeline project.

The project aims at providing continuous, safe and fast cargo and
passenger transportation between Asia and Europe through connecting
the railways of the People’s Republic of China and Kazakhstan in the
east, through Turkey’s Marmaray (Commuter Rail Mass Transit System)
to the European railway system in the west.

Professor Suha Bolukbasi, who works on Caucasus and Central Asian
politics at Middle East Technical University (METU), told The New
Anatolian daily yesterday that Turkey has good relations among
Azerbaijan and Georgia, stressing that this project will help to
strengthen and deepen cooperation among these countries. He described
the project as a constructive step in Turkey’s regional interest.

"The project aims to unhook post-Soviet countries from the Russian
Federation’s impact. It also helps the European Union and the U.S. to
establish effective relations with post-Soviet countries," he said.

Bolukbasi stressed that the European Union attaches importance to the
initiative, saying, "Through the project, Turkey’s position with the
EU will be strengthened along with Caucasus relations. Turkey will
play a more influential role in its region."

The framework agreement for this wide regional cooperation project
will be signed tomorrow in Tbilisi, Georgia, with the participation
of Turkish Prime Minister Erdogan.

A total of 76 kilometers of the project will be built in Turkey. The
project’s infrastructure will be constructed as a double-track railway
line, while the superstructure will be realized as a single-track line.

The Turkish part of the project will cost an estimated YTL 380 million,
with YTL 40 million appropriated in the state budget for this year. In
1998 Turkish State Railways (TCDD) carried out a tender for the
project, but later cancelled it.

Azerbaijan will lend $200 million to Georgia to finance construction
of its portion of the railway linking Azerbaijan with Turkey, under
an agreement signed in Tbilisi last month.

Georgia will have to repay the loan with 1 percent annual interest
within 25 years. Georgian officials said last week that they plan
to use the revenues from the Baku-Akhalkalaki-Kars railway to cover
the loan.

The construction of the KTB project is expected to begin in June and
finish in two years.

* Armenian Opposition

Armenia, which has diplomatic problems with both Turkey and Azerbaijan,
has criticized the move. Armenian presidential spokesperson Viktor
Sogomonian branded the project as politically motivated.

"Armenia has been always guided by the economic effectiveness
of projects," he said at a news conference last week, adding that
Yerevan will continue to oppose construction of the railway and will
use negotiations at different levels as a lever of influence.

One of the Turkish diplomats told the JTW that "if Armenia has always
been guided by the economic effectiveness, so why they oppose the
project. If the project is not economic, then they should no be
interested in".

According to Dr. Sedat Laciner, IR lecturer and head of the
Ankara-based Turkish think tank USAK, Armenia makes mistake:

"Armenia has always been outside of the regional co-operation
projects. Yerevan has always tried to prevent any co-operation. At
the end, Armenia has been isolated. They should be part of the region
instead of rejecting all kind of co-operations. Armenian side says
that Turkey and Azerbaijan should use the lines in Armenia. However
Armenia had damaged the railways between Azerbaijan and Nahcivan in
the past. Armenia has to be a reliable partner and it has to prove its
credibility. Othwerwise the isolation of the country will be deepened."

Kanayan Tamar:
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