The Iranian Cabinet agreed to receive a loan in the amount of USD 500 million from Azerbaijan for the construction of the Rasht-Astara railway line. Under the decision three years is given for a loan and the construction of the project and seven years for the repayment of the loan. Earlier, Deputy Minister of Roads and Urban Development Ali Noorzad said that the loan will be allocated at low interest rates – about 2.5 percent per year.
The Rasht-Astara railway will become part of the international North-South transport corridor and will unite the railways of Azerbaijan and Iran. The transport corridor “North-South” is designed to connect Northern Europe with South-East Asia, including the unification of the railways of Azerbaijan, Iran and Russia. At the first stage, along the corridor, it is planned to transport five million tons of cargo per year, increasing later to more than 10 million tons of cargo.
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