AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
According to a press release dated 4 August 2015, DBK-Leasing JSC, a subsidiary of Development Bank of Kazakhstan JSC, has entered into financial leasing contract with Azerbaijan Railways for delivery of ten mainline locomotives. This leasing financing transaction is made possible with state support within the framework of "Nurly Zhol", the State Programme for Infrastructural Development for 2015--2019 (related GTA Report No. 10937).
This project's value is 8.9 billion tenge (ca. 49 million USD). The mainline single-section freight locomotive of series EVOLUTION® with a capacity of 3356kW are produced by produced by JSC "Locomotive Kurastyruzauyty" has been developed on the basis of advanced technologies of General Electric Transportation. The locomotives are planned to be delivered by the end of 2015. This is the first international Kazakhstani transaction related to delivery of domestic products by means of leasing financing.
'The first locomotive has been already delivered. We are expecting nine more locomotives. Undoubtedly, due the support of Kazakhstan's government, Baiterek holding and allocation of '...' long-term funds from the National Fund through Development Bank of Kazakhstan's subsidiary DBK-Leasing JSC, the railcar fleet of the Republic of Azerbaijan will be supplemented with modern locomotives that meet international quality standards', -- noted the head of Azerbaijan Railways, Mr Javid Gurbanov.
As affected trading partner is selected Georgia because its exports of locomotives to Azerbajan exceed 1 million USD in 2015. There is no UN Comtrade data for exports above 1 million USD for 2014. Due to this reason, data for 2015 is used.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
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