Modernization of Azerbaijani energy system can be delayed
Baku, Azerbaijan, Sept. 29
By Azad Hasanli - Trend:
The signing of the loan agreement between the Asian Development Bank and the Azerbaijani government on the reconstruction and modernization of the country's energy system could be postponed to next year, the Baku office of ADB told Trend Sept.29.
The source said that the reason is associated with the delay in the technical negotiations.
The loan agreement may be also signed in November 2015 as it was planned earlier, the source said.
In November 2015, the Asian Development Bank and the Azerbaijani government must sign a loan agreement on the project of reconstruction and modernization of the country's energy system worth $1 billion.
In May 2015, the Azerbaijani electricity distribution network operator Azerishig and ADB signed a memorandum of understanding on an investment program, stipulating the reconstruction and modernization of Azerbaijan's energy system.
Under the investment program's project, the ADB will allocate three tranches of $750 million ($250 million each trance), and the remaining $250 million will be allocated by the Azerbaijani government.
These funds will be drawn within five years.
The allocated funds are planned to be used to upgrade the electricity distribution network, substations, improvement of services rendered to customers, replacement of existing counters with the digital ones, and the strengthening of human resource capacity of the Azerishig.
ADB was founded in 1966 and has 67 members. The bank's headquarters is located in Manila, the capital of the Philippines. Azerbaijan became ADB member 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, South Korea and Canada (16 percent) and so on.
Since the beginning of cooperation, the Asian Development Bank has allocated over $1.6 billion to Azerbaijan to implement the projects in the sphere of road construction, energy, irrigation, improving water supply and sewerage systems.
Edited by CN