|
EBRD lends Azerbaijan $41 mln to help revive 'Silk Road'
Loan should promote trade and regional cooperation
The EBRD is lending Azerbaijan $41 million to help reconstruct more than 85 km
of road that will help promote trade and regional cooperation between the
countries of Central Asia and the Caucasus.
The 15-year loan will help rebuild the main road running from Hajigabul in the
western part of the country to Kurdamir, located on the “Silk Road,” the
historic trading route between Asia and Europe. A 10 km by-pass at Kurdamir
will also be built under the project.
Raymond Conway, Head of the EBRD’s office in Azerbaijan, said one of the main
issues facing Azerbaijan’s road sector is inadequate funding. Many of the
country’s networks have been neglected, leaving roads that are difficult to
travel along, damage users’ vehicles and inhibit trade. This project should
address these issues by reconstructing what is an important part of a trade
route both within Azerbaijan and with its neighbours.
The project will be undertaken by the Road Transport Services Department
(RTSD), part of the Ministry of Transport, charged with the management of
Azerbaijan’s road system. Part of the loan will be used to promote
institutional reform at RTSD, such as increasing customer focus. A key
condition, for example, is to set up a “road board” represented by at least 50
per cent of road users to advise on all aspects of road policy and management.
The loan comes on the back of the government’s commitment to rehabilitate key
corridors across the country. Whilst this project focuses on a portion of the
East-West Silk Road – which runs for approximately 900 km between the Caspian
and the Black Seas – the government is also expected to give priority to the
North-South route to Russia. Mr Conway said it is encouraging to see the
government’s commitment to reforming the country’s roads, a sector so crucial
for traders, tourists, local citizens and for regional cooperation. The EBRD
is willing to consider future such projects because of their importance to the
country and region.
The EBRD is one of the largest investors in Azerbaijan, having committed more
than €385 million in projects ranging from natural resources to transport to
supporting the growth of entrepreneurship, the foundation of any market
economy. Working with its many partners, the Bank has supported around 30
projects across the country, worth more than €6.6 billion.
|
