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EBRD to deliver second loan tranche for major road project in Azerbaijan by year end

Business Materials 20 September 2013 16:57 (UTC +04:00)

Azerbaijan, Baku, Sept. 20 / Trend A.Akhundov /

The European Bank for Reconstruction and Development (EBRD) plans to approve the second tranche worth $250 million as part of a transport project in Azerbaijan by late 2013, head of the EBRD office in Azerbaijan Neal McCain told Trend on Friday.

"The Azeryolservis Company must carry out certain preparatory work for us to deliver the next tranche," he said. "We must deliver it by late 2013."

According to him, the project work is on schedule.

"These funds will be used for the reconstruction of the road from Bahramtepe to Bilasuvar," McCain added.

The Azerbaijan government and EBRD signed a loan agreement to provide $750 million for a major transport project at a total cost of $900 million in December 2011.

The first tranche of the EBRD loan will be directed towards the reconstruction of the Mingachevir-Bahramtepe road. Reconstruction of the 156 kilometre section of this road in line with modern standards will improve transport links in rural areas where a population of around half a million reside. It will also give access to the motorway connecting Baku to the Georgian border.

The two remaining tranches will be allocated in equal shares.

The main purpose of the project is to contribute to the reconstruction of key regional highways, corridors or roads adjacent to Georgia and Iran.

The EBRD loan will be part of the project on modernisation of the road infrastructure and the state programme funded by the Azerbaijani government from the budget, as well as the World Bank ($675 million) projects and Asian Development Bank ($500 million).

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