The Islamic Development Bank (IDB) and Turkmenistan have signed a memorandum of understanding (MoU) to work together to strengthen regional development cooperation by implementing the missing link of the Silk Road.

The MoU, signed by IDB President Dr. Ahmad Mohamed Ali and Muhametgulygev Deryaguly, the Minister of Railway Transport in Turkmenistan targets the Bereket-Etrek railway line that extends between Turkmenistan and Iran and covering close to 700 kms . The estimated cost of the project is US$ 575 million to finance three aspects: building the railway line itself, funding the signaling and electrification as well as purchasing locomotives. The IDB, depending on the discussions with other partners, is considering providing up to US$ 360 million of the total cost through various modes of financing.
The project may take off before the end of the year if the financial aspects are settled.

The MOU came on the heels of the 34th IDB Annual Meeting held in Ashgabat, Turkmenistan, 2-3 June.09 During the meeting also, IDB signed US$ 31 million agreement with Turkmenistan to finance purchasing two tankers to improve its transportation fleet.