The cost of Baku-Tbilisi-Kars railway project increased due to the global economic developments.

According to Azerbaijani Transport Minister Musa Panahov, the volume of cargo to be transported via the railway will also be increased.

To implement the project, Azerbaijan issued a $200-million loan with 1% interest for 25 year term. Baku will also allocate additional funds, when the final calculations are done.

“The annual interest rate for the new loan will be around 4-6%,” Panahov said, the Azeri-Press Agency reported.