The Eurasian Development Bank (EDB) has signed an agreement to open a $63.5 million credit line to the Osipovichi Carriage Works as part of the production project of freight railway transport, tank containers and their maintenance, BelTA learnt from the Useful Links communication agency with reference to the Eurasian Development Bank.

The funds will be used for the construction of the company and acquisition of equipment. The total capital investment in the construction of the Osipovichi Carriage Works makes up $130 million. The resources of the company’s shareholders, the Belarusian Railways and Grand Express Company (Russia), will be also used to implement the project.

As soon as the Osipovichi Carriage Works reaches its full capacity in 2014, its annual output might reach 3,500 freight cars and up to 2,000 tank containers.

The project meets the strategic goals and mission of the Eurasian Development Bank: it promotes development of the country’s transport infrastructure, increases the volume of mutual investment and trade between the EDB member states.

Much of the equipment for the company will be supplied by Russian machine-building enterprises. It is expected that the major sales markets will be Russia (40%) and Kazakhstan (10%).

The project will create more than 1,600 jobs. In addition, purchase of equipment will generate an additional industrial output and create jobs in related industries.

While implementing the project, Osipovichi carriage works will apply new flexible technology, which will allow it, in a short period of time, to start the production of new models of carriages.

The project relates to transport engineering and infrastructure which are investment priorities for the EDB. Its implementation will help satisfy the demand of the EBD member states in the rolling stock to transport products of the key sectors (grain, fertilizer, petroleum products), and facilitate qualitative improvements in the transport infrastructure.

The Eurasian Development Bank is an international financial institution established by Russia and Kazakhstan in January 2006 to facilitate the development of market economy in the participating countries, their sustainable economic growth and expansion of mutual trade and economic ties. The authorized capital of the EDB exceeds $1.5 billion. The EBD member states are Russia, Kazakhstan, Belarus, Tajikistan and Armenia.