Baku, Azerbaijan, June 14
By Azad Hasanli - Trend:
Board of Directors of the Asian Development Bank (ADB) on June 22 will consider the allocation of the first tranche of loan to improve power distribution system in Azerbaijan, Nariman Mannapbekov, ADB country director in Azerbaijan, told reporters in Baku.
Mannapbekov said the amount of the first tranche will be $250 million.
These funds will be used for the purchase and installation of the necessary equipment at the substations, as well as for the purchase of meters for the population, he said.
The loan will be allocated for 25 years with the five-year grace period, noted Mannapbekov adding that the terms of the loan will depend on the Azerbaijani government's choices.
The project will cover all the regions of Azerbaijan except Baku, he said.
In May 2015, Azerbaijan and the ADB signed a memorandum of understanding on an investment program worth $1 billion aimed at reconstruction and modernization of the country's power supply system.
The ADB will allocate three tranches of $750 million ($250 million each) in accordance with the investment program and the remaining $250 million will be provided by the Azerbaijani government.
These funds will be used to upgrade the power grid, substations, improvement of services provided to customers, replacement of existing meters with digital meters and others.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, ADB is owned by 67 members - 48 from the region.