Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

02 Nov 1999



PSD disclosed:

05 Feb 1998

Project Description

Improvements to the Azeri section of the trans-Caucasian link, through track renewal, improvements to a tanker wagon workshop and commercialisation initiatives.
Project objectives: To improve the Azeri section of the trans-caucasian rail link, which is the main international transit route between Baku and the Georgian ports, major repairs to a washing station and the introduction measures to corporatise the Azerbaijan State Railways.

Transition Impact

The project is expected to improve the ability of Azerbaijan State Railways to offer more reliable rail freight transport services, through infrastructure investment and the implementation of a five-year business plan.

The Client

Azerbaijan State Railways.

EBRD Finance

Loan of US$ 20.2 million (EUR 19.2 million) and grant funding of US$ 8 million (EUR 7.7 million) from the EC Tacis programme.

Project Cost

US$ 36.11 million (EUR 34.74 million).

Environmental Impact

The project was classified as B/0, requiring an Environmental Analysis. The investment project was preceded by a pre-investment study. This included provision for the identification of the main environmental impact of the recommended investments and consultation with the Azeri environmental authorities. The Environmental Analysis led to a condition of the Bank’s involvement in the financing of the investments which obligates Azerbaijan Railways to develop an in-house capacity for environmental management and to implement a specific Environmental Management Plan for the Balajari Wagon Washing Plant, the most environmentally significant component of the project. The Plan outlines a number of specific actions to reach regulatory compliance in the areas of air emissions, waste management, materials handling and storage, as well as energy conservation, waste reduction, occupational health and safety and emergency response.

Technical Cooperation

Technical cooperation will be available for assistance with project implementation and with commercialising the Azerbaijan State Railways.

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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Text of the PIP

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