ADB submit Azerbaijan Railways considerations on North-South Corridor project

By Azernews

By Amina Nazarli

The Asian Development Bank expects the feasibility study for evaluation of the project on financing of the North-South Railway Corridor, as well as development of the railway sector in Azerbaijan to be ready no later than in August.

ADB Country Director for Azerbaijan Nariman Mannapbekov told about this while talking to reporters on March 29, recalling recent visit of the ADB mission to Baku in this regard.

“In the next few days, we will submit our considerations to the government and, in particular, the head of the Azerbaijan Railways about the financing of the most priority sections of the North-South Corridor. We cannot yet name the exact amount, because the grant for the development of a feasibility study for the project is approved. Consultants have started the work, and the feasibility study will be developed in late July-early August. Only after this it will be possible to name the approximate amount. So far, we have planned about $200 million for the investment. But the amount can be either larger or smaller,” Mannapbekov clarified.

ADB earlier postponed consideration of allocating a loan worth $200 million for implementation of the North-South Transportation Corridor, as well as for the development of the railway sector in Azerbaijan.

The Bank planned to review the project on April 15, 2017, but the event is postponed to August 25, 2017.

Allocation of funds for the realization of the North-South project is envisaged within 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 and has a strategic importance for the region. 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 also expected to bring great economic benefits.  The route, part of which will pass along the western coast of the Caspian Sea, from Russia to Iran through Azerbaijan enjoys several advantages compared to other transport such as Suez Canal-the Mediterranean Sea-Northern Europe and the Turkmenistan-Kazakhstan-Russia-Northern Europe routes.

 Azerbaijan, which became a member of ADB on December 22, 1999, has a 0.5 percent share in the bank’s capital.