ADB to consider issuance of funds for North-South project
By Nigar Abbasova
The Asian Development Bank (ADB) will consider the possibility of allocating a loan worth $200 million for implementation of the International North-South Transportation Corridor (INSTC) project.
ADB reported that the bank mission will be in Azerbaijan from November 14 to November 25. The aim of the visit is to gather information about the project.
“The overview of the project will be held on December 12, while the date of the loan’s final approval is still unknown,” the message said.
The project will have five outputs, which include cover enhanced management autonomy of Azerbaijan Railways CJSC (ADY) and transport sector governance, effective financial restructuring of ADY’s liabilities, enhanced financial and management control, efficiency and reporting at ADY, business development and corporate restructuring of ADY, updated and modernized infrastructure for the for the Baku-Yalama (border with Russia) rail line of the North South Railway Corridor. The policy-based loan will support outputs 1-4, while the project loan will support output 5 (Baku-Yalama rail line), according to the message.
The infrastructure rehabilitation of the North South railway envisages the repair and rehabilitation of 441 kilometers of single track between Baku and Yalama, the development of computerized freight operation management system and consulting service support to project implementation and future project development.
Allocation of funds for the realization of the North-South transportation corridor project is envisaged within the framework of the ADB’s railway sector development program.
Azerbaijan Railways CJSC is the executing agency for obtaining the loan.
The North-South transportation corridor is meant to connect Northern Europe to South-East Asia. It will serve as a link connecting the railways of Azerbaijan, Iran and Russia.
At the initial stage, the North-South corridor will transport 5 million tons of cargo per year with further expansion of transportation to over 10 million tons. Along with making a great contribution to the diversification of Azerbaijan's economy the project is expected to turn the country into a major transport hub. The project, which is considered to be a strategically important and advantageous in terms of time of transit cargo transportation is expected to bring great economic benefits.
The ADB, based in Manila (the capital of Philippines), dedicates itself to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 of which are from the Asia-Pacific region. Azerbaijan, which became a member of ADB on December 22, 1999, has a 0.5 percent share in the bank’s capital.
Other projects of ADB in Azerbaijan, which have proposed status, include renewable energy development project, water supply and sanitation program – tranche 4, solid waste management project for intermediary cities and Shah Deniz gas field expansion program.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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