NEW CREDIT AGREEMENT WITH EBRD DEVELOPED

The European Bank for Reconstruction and Development (EBRD) is about to complete a process of adoption of a project on financing the upgrade and reconstruction of 60km section of the road from Sumgayit to Zarat settlement in the border from Azerbaijan to Russia, a government source told Trend. An appropriate credit agreement with the EBRD is ready for submission to the Azerbaijani President to obtain an authorization for signing. The agreement can be signed during the visit of the EBRD experts to Baku in early July.

The Board of Directors plans to consider the issue of approval of $100m for the project with the budget of $110m on 28 June.

The beneficiary of the financing will be the Road and Transport Services Department of the Azerbaijani Transport Ministry, which manages and serves to 18,723km long automobile route in the country. Under the project it is planned to establish 4-6 regional branches of the Department, conclude agreements on services, which will enable to attract local potential to road work.

The Council on Road Consultations will carry out control over distribution of contracts. The contracts will be developed through attracting technical assistance.