ASSA-Irada,
6, March 2008

Representatives of Azerbaijan, Georgia and Turkey gathered in Baku Thursday to discuss construction of a major railway to link the three countries.

The third meeting of the steering council focused on the work done in 2007 to implement the Baku-Tbilisi-Gars project as well as the budget for building the Marabda-Kartsakh section of the rail line in Georgia.

General Director of the Marabda-Kartsakh Railways LLC Ramaz Georchadze said preparations for construction operations in the Georgian territory were close to completion. Azerbaijan earlier allocated a $220 million, 25-year loan to the Marabda-Kartsakh Railways LLC for the upgrade of the 149-km Georgian section of the railway.

Georchadze said the first portion of the credit has been transferred to the contractor's account. The equipment needed for construction work is currently being delivered. Construction is due to begin in late April-early May.

Georchadze said cold weather and heavy snowfall have been impeding construction operations so far.

He said the project is to be finalized in 2011, adding that he expected construction of the railway to be completed on time. "I believe no problems can emerge with regard to the project, as all issues had been solved during the preparation of the feasibility study."

Turkish Transport Ministry official Ahmed Arslan said 5 million tons of cargo a year would be initially transported through the railway, with the figure to triple in the future. According to preliminary estimates, the railway has the capacity to carry 23-25 loads of consignments and three to five passenger trains a day.

Arslan said the tender announced to select a contractor for building the railway's Turkish section was under way. Turkey needs $250 million to construct its 75 km section of the rail line. Construction work is due to kick off in May, Arslan said but did not rule out that the operations might begin in the summer over some technical matters.

The Baku-Tbilisi-Gars railway will create the shortest route to transport cargo between Europe and Asia. The three countries sealed a deal on building the rail line in February 2007.