Italy will provide a loan to Afghanistan for the railway construction

Italy will provide a loan to Afghanistan for the railway construction

Italy will provide 65 million euros to Afghanistan, which will be allocated in three phases.

Just before deputies of the Lower House of the Afghan Parliament (Volusi Jirgi) approved by a majority vote an agreement with Italy on the provision of funds for the railway construction. The Italian Government has agreed to accommodate Afghanistan with a special-purpose loan for the construction of a section of the Herat-Khaf railway crossing Iran and Afghanistan, Afghanistan.Ru reports.

At the moment, the construction of two sections of the road in Iran has already been completed, and about a month ago, work was continued in Afghanistan. In December last year, the Afghanistan Railway Authority entered into an agreement with the Kazakh Company Inkon-KZ for the construction work in its territory.
The construction of the third section of the road is financed by the Afghan Government, and Italy will finance the fourth, final phase of the project. The agreement provides for the repayment of the loan within 40 years.

The completion of this project will allow Afghanistan to expand its participation in regional and international trade, and the country’s income from the operation of the railway, according to rough estimates, will amount to 64 million USD annually.

In addition, the opening of a 10-kilometer railway segment from the border with Turkmenistan to Akina village in the Afghan province of Faryab, as well as the launch of a project of the new Akina-Andkhoy railway branch with a length of 35 kilometers, took place in July 2019.

The Kerki-Imamnazar-Akina railway is the first link in the Asian transport corridor. Prior to its opening, the entire amount of goods was transported between Turkmenistan and Afghanistan through the railway crossings Serhetabat-Tourgundi and Kelif-Termez-Mazar-i-Sharif. The demand for this railway is obvious and its importance will continue to increase as more new logistics routes are connected to it.

In the future, this railway line is to be extended to the border with Tajikistan with further access to the states of the Asia-Pacific region.

The railway construction in Afghanistan is carried for funds donated by the Turkmen party. Turkmen specialists not only lay the steel road, but they also equip facilities of the related infrastructure.