Last week, Manila (Philippines) hosted negotiations between ADB railway experts and the leadership of Azerbaijan Railways CJSC.
A source in the Azerbaijani government told Trend that the negotiations were successful and the parties are optimistic about signing an agreement on financing the project.
The International North-South Transport Corridor is meant to connect Northern Europe with Southeast Asia. It will serve as a link connecting the railways of Azerbaijan, Iran and Russia. At the initial stage, it is planned to transport 5 million tons of cargo per year through the corridor and over 10 million tons of cargo in the future.
ADB will allocate $400 million, while the French Development Agency will allocate $175 million.
The loans will be mainly used as investments in the development of Baku-Yalama railway section (border with Russia) as part of the North-South transport project and as support for expanding the management autonomy of the Azerbaijan Railways CJSC, effective financial re-structurization of company’s liabilities, expansion of financial and administrative control, efficiency and accountability of the company, as well as the development of business and corporate restructurization of the railway authority.
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