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ADB can Allocate $200M for North-South Project

ADB can Allocate $200M for North-South Project

The Asian Development Bank (ADB) will consider the possibility of allocating a $200 million loan for implementation of the International North-South Transportation Corridor (INSTC) project, said an ADB message on its website.

An ADB mission will be in Azerbaijan from Nov. 14 to Nov. 25 in order to gather information about the project, according to the message. The project’s overview will be held on Dec. 12, while the date of the loan’s final approval is still unknown, according to the message.

“The project loan will be used mainly to invest in the Baku-Yalama (border with Russia) rail line of the North South Railway Corridor,” said the message.

Outputs will 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, and business development and corporate restructuring of ADY, 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, says the message.

Azerbaijan Railways CJSC is the executing agency for obtaining the loan. ADB was founded in 1966 and has 67 members. The bank is headquartered in Manila, the capital of the Philippines. Azerbaijan became an ADB member on Dec. 22, 1999. The country’s share in the bank’s capital is 0.5 percent.

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.

Source: trend