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Baku-Tbilisi-Kars railway plan faces stagnation

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  • Baku-Tbilisi-Kars railway plan faces stagnation

    Baku-Tbilisi-Kars railway plan faces stagnation

    13:04 - 26.05.13


    The railway project expected to connect Baku, Tbilisi and Kars
    (Turkey) remains idle to date despite earlier promises to resume its
    constriction this month.

    The activities, designed to be completed in 2014, receive
    contradictory reports due to existing problems in the ptocess,
    Contact.az reports, citing the government change in Georgia (at the
    end of 2012) as a major cause. According to the Azerbaijani website,
    the new Georgian cabinet, led by Prime Minister Bidzina Ivanishvili,
    has questioned the thrice increase of the project costs (from $220m to
    $775m).

    The question was raised at a late 2012 meeting between the new
    Georgian premier and the Azerbaijani president, Ilham Aliyev.

    Since 2007, Azerbaijan has been planning to allocate $775 from its oil
    funds to assist in the construction of the pipeline's Georgian
    section. But only part of the amount, $431,13, had been paid before
    Ivanishvili-led Georgian Dream coalition came to power.

    The project envisages the construction of a 124 km. railway expected
    to cross the territories of Turkey (92km) and Georgia (32km).

    Despite such a difference in lengths and the complicated relief,
    Turkey has left the preliminary price unchanged ($200m from each
    side).

    According to the Georgian sources, the new government has warned that
    it is ready to cover only the return sums that were really spent on
    the project.

    Azerbaijan provided loans for pipeline construction on Georgia's
    territory after the two countries' leaders mutually agreed over
    project details, particularly the plan for raising the costs.

    Those circumstances are said to have driven Georgian President
    Saakashvili to a state of nervous tension. He has several times
    visited Azerbaijan (the latest visit being on May 7) to settle
    financial issues that stemmed from Ivanishvili's policies.

    The project costs on the Turkish territory have also reportedly rised,
    causing the country's opposition to voice its anger.

    The side links the higher project costs to the relief difficulties as
    though neither were aware of the fact while projecting the
    construction, reports the Azerbaijani website.

    Ensar Ogut of Turkey's opposition Democratic-Republican Party has said
    that the process has experienced a failure, adding that it is unlikely
    to be completed even in 2014 or 2015.

    Armenian News - Tert.am

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