The resumption of the construction of the Baku-Tbilisi-Kars (BTK) railway promised in May did not happen. While there are conflicting data showing that there are problems in the continuation of work that is scheduled to be completed by the end of 2014.
The project has had a fever since the end of 2012, after the Bidzina Ivanishvili Coalition came to power in Georgia. The new government has questioned almost threefold rise in the cost of the project from $ 220 million to $ 775 million and the issue was subject of negotiations between Ivanishvili and President Ilham Aliyev at the end of last year.
Azerbaijan for the construction of the Georgian section provided a loan of $ 775 million from the State Oil Fund in February 2007. Before coming to power of the coalition Georgian Dream in October 2012, $ 431.3 million of this loan was allocated.
The project involves the construction of 124 km of rail roads, of which 92 km are on the Turkish part and 32 kilometers are in Georgia. With such a difference in the length of the ways and more complicated pattern in the Turkish part, the cost of the project was originally equal - $ 200 million on each side.
According to Georgian sources, the new government warned that it is prepared to commit itself to return only those funds that were actually spent on the project. The money for the construction of the Georgian section of the road was allocated as a loan by Azerbaijan, after President Aliyev and Saakashvili came to a mutual agreement on the details of the project, in particular for its appreciation.
In this situation Saakashvili behaves too nervously. Several times he visited Azerbaijan and for the last time on May 7, to settle the financial aspects that had arisen as a result of the new approach of Ivanishvili.
Appreciation of the project is also noted on the Turkish side of the railroad, which led to censure from the opposition. On both sides of the border the rise in the cost of the project is tied with a complex terrain, though it was known at the design stage.
According to the Turkish portal Rayhaber, MP from the opposition Republican People's Party Ensar Ogut said that in 2013 the program of the resumption of the railway failed and actually it becomes doubtful that even in 2014-2015 it will be possible. -0--
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