OREANDA-NEWS. July 24, 2009. The Georgian party delays the construction of the national segment of new railway line Baku-Tbilisi-Kars.

At today’s press conference in Baku SOFAZ executive director Shahmar Movsumov said that within the framework of Azerbaijan’s USD 200 million state loan to Georgia for this construction the SOFAZ had transferred only AZN 27.1 million.

“It is linked with weak course of construction works in Georgia. Fastening of jobs, however, is expected soon,” Movsumov said.

Earlier it was endorsed specified budget 2009 of Marabda-Kartsakhi Railway OJSC and debated other issues, including Georgia’s claims for increase of costs of works.

Initially the parties expected to complete the construction of the missing part in Georgia by the end of 2010.

At the 5th session of the Coordinating Council for Construction of Baku-Tbilisi-Kars Railway Line in Tbilisi at the end of 2008 Georgia raised the issue of extra financing for the project. In 2009 the Azerbaijani Government planned to disburse USD 130 million out of a USD 200 million state subsidized loan for construction of the Georgian segment.

The 4th Baku session of the Coordinating Council for Rehabilitation, Reconstruction & Construction of Marabda-Kartsakhi railway segment held on 16 September 2008 within Baku-Tbilisi-Kars Railway Project covered a range of such issues as approval of Marabda-Kartsakhi OJSC audit report, the work plan 2008 and report on work done for the first half of 2008, amendments to the OJSC’s budget for 2008 in connection with extra works as well as the issue on archaeological works of the route. The session was held in closed regime.

Ukrainian scientific & research institute Kievgidrotrans also presented a working project of Marabda-Tetriskaro segment as long as 29.2 km that makes about 50% of Georgian segment of the line.

The construction in Georgia is led by Azerinshaatservis Company (Azerbaijan) that is planning to complete the construction in 2011. In parallel a 76-km Turkish segment is under construction as well.

Baku-Tbilisi-Kars Railway will allow provision of passenger and cargo carriages from China to Europe.

Baku-Tbilisi-Kars Project includes construction of Kars-Akhalkalaki railway line with length of 98 km, 68 km out of which fall to Turkey and 30 km to Georgia. Also Akhalkalaki-Tbilisi needs reconstruction.

Initially the project was estimated at USD 422 million, USD 202 million of which will be spent for Georgian segment and USD 220 million for Turkish one. The Azerbaijani Government sponsors the construction of Georgian segment by extending a 20-year loan.