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AGREEMENT On Baku-Tbilisi- Kars New Railway Connection The Goverrmert of Georgia, the Govemment of the Republic of Turkey and the Government of the Republic of Azerbaijan, hereinafter referred to as "Parties", WISIIING to support, develop and strengthen friendly relations and cooperation betwe€n each other; BASED on joint Statement of the Presidents of Georgia, the Republic of Turkey and the Republic of Azerbaijan in the Declaration signed in Baku on May 25'h 2005 among Georgia, the Republic ofTurkey and the Republic ofAzerbaijan; REALIZING increasing necessity of cooperation between countries in regional and global perspective; CONSIDERING socio-economic benefit of the present project and its cotrtiburion to development of regions/provincial regions of the Parties; ATTACHING great importance to widening and increasing efficiency of foreign-economic relations; RECOGNIZING importance of existing agreements on kansit transport for inte'national trade and acc€leration ofeconomic gtoMh ofthe States; EMPHASIZING commitment for development of uninterupted, timely and effective movement ofgoods between each other, as well as from/to other States; AIMING on firrther perfection of own regimes of traosit transport of passengers and goods on the basis of existing experience and in accordance with international conv€ntio[s and standards; MAKING eyery effort for realization and functioning of the project on Baku-TbilislKars new connecting railway line and its filrther exploitation; HAYE AGREED AS FOLLOWS: Article I D€finitions For the purposes ofthe present AgreeEent definitions mentioned below, mean: 1.1. Mode of tratrsport - kansport infrastructure and kansport facilities, providing passenger and goods transport by lailway. b) Transport of goods - mode of hansport service on Erovement of goods preserving their physicochemical properties and mass within defiaed limits Container - aII devices for ha-osportation (big crates,.tankers, swap bodies, etc.), that: have sufficienl stength for reuse axe constructed especially for facilitation ofgoods tmnsport on vessels or with the hllp c) are equipped with equipment facilitating loading, u-Dloading and transfer ofgoods 1.2. 1.3. 4 1.4 C.rrier - legal or physical person, practically trarcporting goods, or responsible for using transport facility realizing intematioml tansport of goods, passengers and their baggage in accorda-nce with the existing national legislations of the parties. Goods - all types of goods transported in wagons, containers. I[ternational trsrsit of goods - rDovement ofgoods through the state territory ofthe Party uodel customs contlol, whetr points of departure and delivery of goods are outside the teritory of tlis state. Iutertrational tratrsport - movement of passengers/goods by railway, realized on the state territory of at least two Parties to thc present agreement. Rrilway connecfiou a network of main transport systems (both existing and to be constructed) providing transportation ofpassengers and goods among the Parties, Baku-Tbilisi-Kars Eew railway connectior - construction ofthe railway connection from Kars station (Turkey) to Alhalkalaki (Georgia) station, as well the construction of infrastructuJe facilities, rehabilitadon and reconstruction of the existilg railway and related installations ftom Akhalkalaki station to Manbda (Georgil) station and further operation ofthis railway link to Baku (Azerbaijan), as well in opposite direction. 1.10. Passenger user of transport sewices, related to movement of physical person by railway hansport, entered into contract on transportation. 1.11. Passeuger Trarsport - mode of tarsport service otr movement of physical persons (passengers) by railway transport. 1.12. Related Iostallatious the border-crossing points, customs gates, wagon groups changing stations, trans-shipment and bogie changing stations which have significant importance for intemational tEnsl,orts along the liDk within the framework of new railway connection which already exists or is to be coDstructed. 1.13. Persoutrel - crew ofpassenger or freight trains providing intemational tansport. 1.14 Transport services all modes of services, related to movement of passengers or goods ftom point of departure to t}re point of destination by railway transport, excluding basic transporlation fees. 1.5. 1.6. l-'1. LE, - 1.9. - - - Article 2 Aims of the Agre€Bent 21 For the realization of Baku-Tbilisi-Kan New Railway Conaection project (hereinafter refened to as "New Railway Connection") aiEs ofthis Agreement are: raising effectiveness of transport contrections; promoting access of railway transport services of the Parties of this Agreement to the intemational market; providing corutections ofTrans-Euopeal and Trans-Asian railway corridors; promoting increase ofvolumes ofintemational tansport ofpassengers and freights; Ensuring security of modes of hansport, safety of fteighti as well as eDviroDnental protection according to intcmational standards; harmonization of transport policy, as well as legal regulations in the field of transport for implementing this Agreement; a) b) c) d) e) 0 8) 2.2 a) b) c) providing equal conditions for transport sewices of passengers aDd goods tle --- thrcugh -" temrory of rhe Parties, within New Railway Co*."tion, ,,iong ,f,.r', 2.1., Panies make every effort to: and goods rluough their territories; transport; ctocurnents and procedures (including customs), retared ro transir rransport of passengers ;.-J",""..i,o.,., in accordance with the adopted intemarional ana _d;J;, id;h ag....ir. ,*a!rirl" -" Articlc 3 Gerleral provisiotrs 3 t. regulates legal and organizational issues, related 1o realization and tunctioning- of the New Railway Conniction Pt..Agf.tll [il,'#X."i#.T:::rs 3.2 _d pr""idi; i;;;JonJ ila trurrit "iir,."i;".ti., "r"',!'[," N"* and goods th'rough the teniioriet In-order to achieve the aims of this Agreement, are: Competent Authorities ofthe padies evelopme[t; of Transport; try of Transport. sign executive bodies. and obligations of any party arising from arty is a sigoatory. 3.3. promotiDg Itrterrational Article 4 Trausport of passeagers and Goods 4.l. Each Party shall grant other parties the right for intemational goods tlrough the respective territo.ie; Agreement. transit of passengers and under ,h;-i"rrn, ;;-;itions of this 4-2. Parties shall promote intema 4.t. 4 4. wr r"r.irori.r. unl..s it is.ont ari panies shau Agreement. The Parties "a"fr .r.Jij intemational respective re ,tJ entry and exit visas for the personnel engaged in accordins to the procedures set out by H:.:lXt Article 5 Taxes, Dufies aDd oater payDeEts 5.1. 52 Article 6 Coordiratiotr Courcil . 6.1. 62 63 Padies establish Coordination Council in order to regulate issues, conceming realization ofthis Agreement and application ofjls terms. Coordination Council, on its first session Olat must be held in the course of thLree mo[ths_ afier the day of entering into force of this Agreemedt, adopts terms that establishes rules and procedues ofits activities. Coordination Council meets at least once a year or upon the request of any party to this Ageement. Arficle 7 Setllemelt ofDisputes 7L '72 Any dispute, disagreement or claim arising ftom implementation, interpretation, infringement of this Ageemert is forwarded to lhe Coordinatiotr Council for consideration a.nd settlement. Ary dispute, disagreement or claim that car rtot bo solvcd by the Coordimtion Coulcil, are settled by consultations ard negotiations among the padies. Article 8 Depository 8l The Govemment of the Rcpublic of Turkey (hereinafter ref€rred to as ,,Depository State") is i}re depository of fiis Agreernent. Depository State provides all parties with certified copies of this Agreement. Depository State informs the Parties that alrcady ratified fiis Agreement on the accession ofother states to this Agreement. Article 9 Ratilicstior This Agreement is subject to ratification according to the national legislations of the Parties. Instrument ofratification shall be deposited to the Depository State. Article l0 Accessior to the Agreemetrt 10.1. This Agreenent shall be opened to the other states for the accession only with the consent ofall Parties who originally signed this Agreement. 10.2. In respect of a state uhich has acceded, this AgreemeDt shall enter into force 30 days affer thc date on which that state deposits the instlument of accession with the Depository State. The state which has acceded to this Agreement shall notiff, in uriting, its competent authority/authorities to thc Depository State who, in tum, shall commu.tricate such notification to other Parties. Article ll Ameudmcuts rud Additiors Any alnendment and addition may be made to this Agreement by mutual consent of the Parties. Such addition and amendment shall be madri: in the form of separate protocols being an iflte$al part of this A$eement and shall enter into force in accordance with the provisions ofAnicle l2 of this Agreement. Article 12 Etrtry irto Force This Agreement shall enter hto force ir 30 days after the date of deliverance ofthe last third document on mtification to the Depository State by Panies. Done in on 2007 in single original text in English and national languages of Parties that initially signed this Agreement, all texts being equally authentic. [n case ofdivergence of interpretation ofthis A$eement, English text shall prevail. IN WITNESS WHEREOF, the undersigned, being duly authorized representatives of the Parties have signed this Agreement. On behalf of the Government ofGeorgia On behalfofthe Goverument of the Repubtic ofTurkey On behalf of the Government of the Republic of Azerbaijan