AZERBAIJAN, WORLD BANK SIGN NEW LOAN AGREEMENT

AZG DAILY
19-12-2009

Economy

The Government of Azerbaijan and the World Bank have signed a $450
million loan agreement for the Railway Trade and Transport Facilitation
Project, said the WB Office in Baku, according to APA.

The loan, which has a maturity of 23 years with an 8-year grace period
(LIBOR +0.25%), will improve railway services in the country, as well
as the competitiveness, financial sustainability, operating and cost
efficiency, and capacity of the Azerbaijan Railways (ADDY).

According to the source, the five-year project will target the
transport corridor running towards Georgia (East-West corridor).

The total project cost is approximately $1.1 billion.

The Railway Trade and Transport Facilitation Project supports the
implementation of the first phase of the 2008-2011 Program of Railway
Modernization of the Republic of Azerbaijan. It will focus on the
institutional restructuring of the Azerbaijan Railways.