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JBIC to Re-Assess Water Supply Project In Azerbaijan by Decreasing List of Districts

Business Materials 21 November 2007 17:33 (UTC +04:00)

Azerbaijan, Baku /corr. Trend I.Khalilova / The Japanese Bank for International Cooperation (JBIC) and the Government of Azerbaijan reached an agreement to reduce the list of districts named in the project of the improvement of the water supply and sewage system, a source stated at the Azerbaijan Consulting Company (ASPI). The project was to include ten districts, but due to an increase in the price of construction materials, the number of districts was decreased to five - Shemaha, Salyan, Neftchala, Barda and Guba.

The need to reduce the number of districts is because the Government plans to borrow nearly $160-180mln from the Japanese Bank and cover the remaining part at its own expense. According to initial assessments, the cost of the project is $200mln.

A JBIC mission is expected to visit Baku on 10-12 December to re-assess the project. During the visit, a concluding agreement on the bank's participation in the project will be reached.

The feasibility study for the project was devised by the consortium Tokyo Engineering/ASPI.

The physical works on the project will begin in October 2008. Therefore, the Japanese Bank's Board of Directors may approve the project at the beginning of next year.

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