Azerbaijan signed loan agreement on road project with ADB

Photo: Azerbaijan signed loan agreement on road project with ADB / Business News

Baku, Azerbaijan, May 6
By Emin Aliyev - Trend:

Azerbaijan and Asian Development Bank signed a loan agreement within the framework of the fourth project of the Road Network Development Program, the Azerbaijani Finance Ministry reported.

The document was signed by Azerbaijani Finance Minister Samir Sharifov and ADB President Takehiko Nakao within the framework of the 47th annual meeting of Board of Governors held in Astana.

Funds in the amount of $45 million will be allocated for the construction of four bridges (one railway viaduct and three bridges across the river), reconstruction of the local roads in the city of Ganja (365 kilometers west of Baku).

A loan was approved by the ADB Board of Directors in March. The total project cost was estimated at $ 58 million, according to the preliminary data. In accordance with the agreement reached last week during the visit of the Bank's transport mission to Baku, the re-evaluation of the project will be held before the announcement of the tender.

"Accordingly, the cost of the project will be determined after the final cost estimates," - the ADB representation said.

Besides, the possibility of expanding the coverage work is not excluded by taking into account the presence of other bridges and local roads, requiring immediate reconstruction, which can be implemented with savings credit resources.

JSC Azeryolservis of the Azerbaijani Transport Ministry previously told Trend, the construction work of the project is planned to be launched during 2014.

The Agstafachay-Poylu-Georgian border two-lane highway was commissioned in January 2014 after reconstruction. The total length is 59 kilometers. The reconstruction of the road began in November, 2011 and ended in December, 2013. As a result of the reconstruction, the road has been transferred from the third to the second technical category.

ADB loan funds are part of the last tranche of the first Multitranche Financing Facility package intended for road financing. ADB allocated from this multi-tranche package for road construction, $400 million for the construction of the Masalli-Astara road which was approved in the amount of $500 million in August 2007. It allocated $55.4 million for financing the part of the work within the project for reconstruction and expansion of the Ganja highway.

Azerbaijan has been a member of ADB since 1999.The active credit portfolio ADB in the country has reached $1.2 billion.

ADB was established in 1966 and has 67 members. The bank's headquarters is located in the capital of the Philippines, Manila. Azerbaijan joined ADB on December 22, 1999. The country's share in the bank's capital is 0.5 percent.
ADB's leading shareholders are Japan and the United States (31.2 percent of the total share capital), India and China (12.8 percent), Australia and South Korea and Canada (16 percent).

Translated by S.I.
Edited by C.N.

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