Azerbaijan to Allocate Georgia $220 Million Credit for Railroad Construction

PanARMENIAN.Net - Azerbaijani will allocate a $220 million credit to Georgia for the term of 25 years. An appropriate agreement was signed by Azerbaijani Minister of Transport Ziya Mammadov and Georgian Minister of Economic Development Georgy Arveladze. It will come into force after ratification by the parliaments of the two states and conclusion of an agreement by the agent banks. The credit is meant for the construction of the Kars-Akhalkalaki-Tbilisi-Baku railway construction.



The project includes construction of a Kars-Akhalkalaki railway branch stretching for 98 km with 68 km on Turkish territory and 30 km - on Georgian. The Akhalkalaki-Tbilisi sector also needs some reconstruction. Works is Turkey are valued $220 million, while the Georgian sector will cost $202 million.



Last October the three states agreed to coordinate all documents and launch building in 2007.