ROA will hamper construction of Kars-Baku railway by political means

Regnum, Russia
Jan 29 2007

Armenia will hamper construction of Kars-Baku railway by political
means

Armenia has been always guided by economic effectiveness of projects
and it categorically opposes political projects that look like
economic ones only on the first sight, which is in particular true
about the Kars-Akhalkalaki-Tbilisi-Baku railway, Armenian president’s
spokesman Viktor Sogomonyan announced at a news conference on January
29.

According to him, official Yerevan categorically opposes construction
of the railway and it will use negotiations at different levels as a
lever of influence. `The fact that the United States refused to
finance the construction is a result of the official Yerevan’s
steps,’ Viktor Sogomonyan noted adding that the Armenian side at
various meetings raises the issue of the railway, which Turkey,
Georgia and Azerbaijan want to construct bypassing Armenia.

Earlier, on January 24, US Charge d’Affairs in Armenia Anthony
Godfrey announced that the USA found important and promoted regional
cooperation processes in South Caucasus, as they are basic guarantee
of stability in the region. He reminded that the USA refused to
finance the Kars-Akhalkalaki-Tbilisi-Baku project, saying at that if
`the participant countries intend to implement the project without
expecting financial help from the USA, we cannot prohibit it.’

The Kars-Akhalkalaki-Tbilisi-Baku project envisages construction of
the 98 km long Kars-Akhalkalaki railway, 68 of which come across the
Turkish territory, 30 km via the Georgian territory, and
reconstruction of the Akhalkalaki-Tbilisi section. Construction works
in Turkey are estimated $422 mln, with the infrastructure – $600 mln.
Azerbaijan expressed readiness to finance its share of the project
worth $200 mln and will give $200 mln to Georgia as credit with
annual rate of 1%. The loan will be repaid in 25 years.

The project is supported by Turkey and Azerbaijan, as it is aimed at
connecting the two countries bypassing Armenia. At present time, the
railroad between them runs through the Armenian territory, however it
is blocked by the Turkish side. The project received no support from
the European Union or the United States. The Armenian community in
Georgia speaks against this new railroad, as it will once and for all
estrange Armenia from normal communication with countries in the
region and the world. The US administration prohibited American
companies from participating in financing the project.