By Amina Nazarli
Azerbaijan’s state oil fund allocated $631.79 million as of July 1, 2017 for financing construction of the Baku-Tbilisi-Kars railway (BTK) project.
Under the agreement signed between Azerbaijan and Georgia, the funds were transferred through the International Bank of Azerbaijan to the Marabda-Kartsakhi Railway, which was created for the design, construction, rehabilitation, reconstruction and operation of the Marabda-Turkey railway section and related infrastructure facilities, Trend reported.
In the first half of the year, SOFAZ allocated $1.56 million for the implementation of the project.
Azerbaijan has allocated $775 million loan for the construction of the Georgian section of the BTK. The project is financed by SOFAZ in accordance with the decree of the President of Azerbaijan "On Implementing the Activities of the Baku-Tbilisi-Kars Project" dated February 21, 2007.
The BTK railway is a corridor that will connect Azerbaijan, Georgian and Turkish railways. It is being constructed on the basis of the Azerbaijan-Georgia-Turkey intergovernmental agreement. The main purpose of the project is to improve economic relations between the three countries and gaining foreign direct investment by connecting Europe and Asia.
The railway, construction of which began in 2008 is aimed to improve economic relations between the three countries and gain foreign direct investment by connecting Europe and Asia.
The line is intended to transport one million passengers and 6.5 million tons of freight at the first stage. This capacity will then reach 3 million passengers and 17 million tons of cargo.
Meanwhile, the logistics center that is being built in Kars as part of the Baku-Tbilisi-Kars (BTK) railway project will be commissioned in October 2018. Annually, 412,000 tons of cargo will be transported through the logistics center, which is constructed on the land plot of 300,000 square meters.
Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli
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