Initial Date of Signing Financial Co-operation Agreement between Azerbaijan and KfW Confirmed
Azerbaijan, Baku / Trend corr I. Khalilova / The financial co-operation agreement between the Government of Azerbaijan and German Development Bank of KfW will be signed in November, according to the Azerbaijani Cabinet of Ministers.
The document stipulates financing of two projects on development of cadastre in Azerbaijan and accompanying measures within the framework of the project on reconstruction of water lines in Ganja and Sheki.
KfW is ready to allocate a privileged credit in the sum of €2.5mln for establishment of cadastre and a grant in the sum of €1mln for institutionalization of a beneficiary organization. At the expense of the funds, it is planned to establish a real estate registration system in Ganja or Sheki, or possibly in both cities.
Within the framework of the water project, it is planned to allot an additional €2mln for payment of the consultant services to manage the project. Implementation of the project has already begun, and in compliance with the accord signed between the Azerbaijani and German Governments, KFW allotted €37.3mln for forty years on a privileged period of ten years under an annual 0.75% interest rate.
The cost of the first phase of the project, which is calculated to last four years, is €54mln, of which €10mln will be allocated as a grant by the Swiss State Economic Relationships Secretariat (SECO) and €7mln by the Azerbaijani Government.