The Board of Directors of the European Bank for Reconstruction and Development (EBRD) approved $100m under the project on financing the upgrade and reconstruction of road section from Sumgayit to Zarat settlement of the highway from Baku to Azerbaijani border with Russia, the EBRD will allocate credit for 15 years with 3-year grace period under LIBOR+1% rate.
The EBRD will finances the section of 197km-long Baku-Samur highway from 28th km to 89th km. The rest part of the route will be financed at the expense of the Czech bank Eximbank, which allotted $180m for the implementation of the credit allotted for 14 years with 4-year grace period and LIBOR+0.6% rate. The total budget of the project is $280m.
The beneficiaries of the EBRD assistance will be the Department for Road-Transport Services of the Azerbaijani Transport Ministry, which handles and serves to 18,723km automobile routes in the country. Under the project it is planned to create 4-6 regional branches of the Department, service level agreement was set up, which would enable to attract local potential to road work. Control over the distribution of such contracts will be implemented by the Road Advisory Board. Technical assistance will be attracted for the development of contracts.