PROSPECTS OF BAKU-TBILISI-KARS RAILWAYS

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Thursday, October 15

Georgian political analyst Ivliane Khaindrava thinks that
Turkish-Armenian border opening might decrease the need for
Georgia’s transit capability. He suggests that this will put
certain planned transport communication projects in question, for
instance, the construction of the Yerevan-Batumi motorway or the
Baku-Tbilisi-Akhalkalaki-Kars railway. According to Russian newspaper
Vremia Novostei President Ilham Aliev recently made an order to
decrease the financing of the Georgian segment of this railway from
USD 100 million to USD 40 million. Initially Azerbaijan was ready to
loan Georgia up to USD 250 million to complete this segment.

It is significant that this reduction has taken place while Tbilisi
is asking Baku to increase its financing. The Armenian media has
immediately given it the interpretation that Baku is no longer
interested in constructing this railway. If we go deeper in this issue
however this should not be the case, because so far there are no signs
of any serious breakthrough in the settlement of the Karabakh conflict
and therefore Baku should be more interested in the construction of
this railway which bypasses Armenia, which has occupied Karabakh.

There is also speculation that The Kremlin is trying to delay the
construction of this railway. However Baku categorically denies this,
and says that the reduction in financing is explained by the general
situation in the world and the need to finance other projects as well.

Meanwhile the construction of the Baku-Tbilisi-Akhalkalaki-Kars
railway is proceeding very slowly. There are certain geological
problems to address, such as landslides where tunnels should be built
and so on. The line should nevertheless be ready by 2012.

From: Emil Lazarian | Ararat NewsPress