ADB Conforms Date of Approving Multitranche Package on Road Projects in Azerbaijan

Business Materials 17 September 2007 21:03 (UTC +04:00)

Azerbaijan, Baku / Trend corr I. Khalilova / By the end of September, the Asian Development Bank (ADB) will approve a $500mln multitranche package on road projects in Azerbaijan, ADB Baku Office reported on 17 September. Such a decision was made as a result of completion of talks between Azerbaijani Government and Asian Development Bank (ADB) regarding project of multitranche package on road projects and a credit agreement on the project of reconstruction of a section of the Massali-Astara highway.

The remaining projects (generally three projects including construction of Massali-Astara highway) within MFF have not been defined yet.

As a result of talks, the Government undertook obligations to bring the legislation into conformity with the demands of the European Union by 2010. In addition, ADB suggests adopting a new Law on Roads.

In addition, the obligations include adopting a new legislation on license for motor transport means involved in cargo transportation. Unifying legislation on cargo transportation envisage adopting new European standards 'Euro- 4'.

The ADB credit resources will be partially ($190 mln) granted from the general resources of the bank (the period of the credit is 24 years with a four-year lax period, and under the interest rate of libor+0.6% per annum), and $10 mln - lax (the period of the credit is 32 years with a eight-hour lax period, and under the interest rate at 1% during the lax period, and 1.5% - during the remaining period).