THE Asian Development Bank (ADB) plans to lend Azerbaijan $US 325m for electrification of a key line to the Russian border.
According to local news outlet Interfax, ADB will provide the loan to enable Azerbaijan to electrify and upgrade signalling and telecommunications on the line between Bilajary in the Greater Baku metropolitan area and Yalama on the border.
In November, the bank said that it was prepared to lend Azerbaijan up to $US 2.5bn before 2029 to support projects in the transport, renewable energy and water supply sectors. Funding for the Yalama line project is expected to be confirmed by ADB later this year.
ADB says that the line is a key part of the North-South international freight corridor, which is used for export and import shipments. It says that as well as electrification and modern signalling equipment, the loan will fund the installation of fibre optic and wireless communications systems.
Locomotive purchase bond
Separately, Azerbaijan Railways (ADY) is to issue a $US 30m bond to finance the purchase of seven mainline locomotives.
Azerbaijan Press Agency reports ADY will issue 300,000 registered, unsecured, non-documentary bonds, each with a nominal value of $US 100. They will accrue interest quarterly, at a rate of 7%. The base cost for the purchase amounts to $US 25.94m, with an additional $US 5.19m allocated for VAT (at 20%) and customs duties.
The new locomotives should increase capacity for ADY freight services and improve operational efficiency and service quality.
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