Geographic Focus: Azerbaijan Republic and Turkmenistan

Project Budget : EURO 1,550,000

Contractor : Ramboll

Implementation timetable: March 1996 through February 1998

Background and Objectives. The majority of rail cargo traffic between the Caucasus region and Central Asia uses the ferry service between Baku, Azerbaijan and Turkmenbashi, Turkmenistan. The alarming rise of the Caspian Sea level since 1977 creates major difficulties in operating the service and both ferry terminals. Moreover, the ferry ramps are nearing technical obsolescence.

The initial objective of the project was to produce a feasibility study to determine potential traffic, to identify technical solutions and to assess appropriate levels of investment As the EBRD showed interest in following this project with investment, it was extended to provide feasibility study documentation matching the EBRD project approval cycle, and to cover also the general cargo and container handling facilities.

Key Issues and Achievements. The ports are key points of transit along the TRACECA route, but the present level of service provided is low, and this is a principal disincentive to usage of the route. Traffic forecasts, capital cost estimates, financial and economic analyses were carried out to determine the most viable scale of investment appropriate. Technical drawings, specifications and tender documents to the required standards of the EBRD have been produced. New road/rail ferry terminals were designed to a specific set of standards.

The EBRD has signed loans with the Governments of Turkmenistan and Azerbaijan for the rehabilitation of the ports, of USD 20 and 18 million respectively.

The study revealed an urgent need for container handling facilities. Therefore, technical assistance necessary to launch a direct investment project "Container Services Between the Caspian Ports of Baku and Turkmenbashi " was provided.

Additionally, an investigation and pre-feasibility study were carried out at the port of Aktau, to examine the possibility of reopening the ferry terminal there. In the framework of the Traffic Forecasts and Feasibility Studies project, this work was continued, and a direct investment project to rehabilitate the rail ferry ramp in Aktau will start in 2000.