Azerbaijan allocates funds to construct Georgian section of BTK project


Since the beginning of financing the railway project Baku-Tbilisi-Kars (BTK) by the State Oil Fund of Azerbaijan (SOFAZ), USD 630.2 million have been allocated (as of January 01, 2017). Baku-Tbilisi-Kars railway is constructed on the basis of Azerbaijani-Georgian-Turkish interstate agreement. Its start-up is scheduled for late 2017, reports UkrAgroConsult.

The peak capacity of the corridor will reach 17 MMT per year. At the initial stage this rate will amount to 1 million passengers and 6.5 MMT of cargoes. Potential export volume of Russian grain on the route "Baku-Tbilisi-Kars" is estimated at 7-8 MMT per year. The project will allow reducing grain delivery period from Russia to Iran by 50-65% and logistics costs by 20%.

According to the regulation on SOFAZ, funds may be used for construction and reconstruction of strategically important infrastructure facilities, as well as for solving important national problems.



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