ADB Approves Multitranche Package on Road Project in Azerbaijan

Business Materials 1 October 2007 15:25 (UTC +04:00)

Azerbaijan, Baku /corr. Trend I.Khalilova / This week the Asian Development Bank (ADB) is preparing to submit to the Government of Azerbaijan a $200mln loan agreement for the project of reconstruction of sections of the Massali-Astara highway which was approved by the ADB Board of Directors on 28 September, a source stated at the ADB Baku office. The credit agreement is submitted within the framework project of Multitranche Financing Facility (MFF) totaling $500mln, which is for financing three road projects. Currently one project has been agreed and the remaining MFF will be presented up to 2014.

Due to delays in talks, there are intentions to accelerate the signing of the credit agreement which is expected to take place in November.

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