Baku-Tbilisi-Kars railway construction

A new credit deal was recently signed in Baku according to which USD 575 millions should be allotted to Georgia from Azerbaijan. This should eventually satisfy the Georgian needs for carrying out and finishing in time the construction and rehabilitation works for the railways laid on Georgian territory. The credit has been issued for 25 years with a 5 percent annual interest rate. This is a private credit issued to the company under the name Kartsakhi-Akhalkakali which is carrying out the construction and rehabilitation works. The credit will be paid back from the profits coming from the running and exploiting of the railways. The first credit which Georgia received within this project was worth USD 200 millions, it was also issued for 25 years but with an annual rate of 1 percent. Georgia, Azerbaijan and Turkey are sure that this will be a very successful and viable venture connecting Caspian Sea region with the Mediterranean routes. It is expected that 30 million tones of cargoes will be transported through these railways annually. Meanwhile, the project of constructing a tunnel under the Bosporus has also been discussed which will make this route even more profitable.