Azerbaijan, Baku /corr. Trend I.Khalilova / The Government of Azerbaijan should strengthen the process of purchasing land along the Masalli-Astara section of the highway and complete by 2008, a source stated at the Asian Development Bank's Baku office. Such a need is due to construction work that will begin in this section next year.
The road has been divided into three parts and the first 23km section will be reconstructed by 2010-2011. In order not to delay this process, the Ministry of Finance should devise a plan on land purchase and begin this process. The measures will be financed by the State budget of Azerbaijan.
The ADB refused this initial requirement of the Government of Azerbaijan with regards to preparing a plan until an approval was met for the reconstruction project by the ADB Board of Directors. Accordingly the plan should be devised by the beginning of the technical work on the project.
This year, the board of directors of the Asian development bank (ADB) intend to approve a multitranche package worth $500 mln under the new project - Multitranche Financing Facility (MFF) and a credit agreement on the project of reconstruction of sections of the Highway - Massali-Astara (a part of the existing project), with financing which will be carried out under the first tranche under MFF.
The ADB credit resources will be partially ($190mln) granted from the general resources of the bank (the period of the credit is twenty-four years with a four-year lax period, and under the interest rate of libor+1% per annum), and $20mln - lax (the period of the credit is thirty-two years with an eight-year lax period, and under the interest rate at 1% during the lax period, and 1.5% - during the remaining period). The lax part of the credit is considered for the reconstruction of rural roads linking the highways.