The credit and guarantee agreements under the project of reconstruction of Azeri Heating Power Plant in Mingachevir are expected to be signed by mid-September, said Raymond Convey, Head of EBRD Baku office.
В"We have received an authorization from the Finance Ministry of Azerbaijan regarding governmental guarantees and credit approvals from Azerenerjis President and First Vice-Premier Yagub Eyyubov. We are now waiting for the Prime Minister to submit a request to the President. On receipt of his response, the Ministry will be authorized to sign the Agreement. We hope signing of the Credit Agreement will take place by mid-SeptemberВ", said Mr Convey.
The Agreement will be signed in Baku, said the EBRD official.
On 27 June, EBRD Directors Council has approved the $115mln credit for this project. The reconstruction of seven power blocks is estimated at $135mln (taxes not included). The credit is issued on standard terms for a period of 15 years with a 3-year payment delay and at libor+1% annual rate.
As Azerenerji is attempting to accelerate commencement of construction operations at 300 mV AzHPP that is operated with black oil and natural gas (300km west of Baku), the credit will be rapidly utilized. EBRDs credit is for turbine equipment rehabilitation and environment improvement.
As a supplier of most of the energy for the Countrys internal needs, the plant has been in operation for more than 20 years and is in urgent need of an upgrade.