Azerbaijan, Baku / corr Trend I.Alizade / A permanent parliamentary commission on natural resources, energy and ecology of the Milli Majis [Azerbaijan parliament] adopted a loan agreement between the German bank КfW with Azerbaijan represented by the Finance Ministry and Azerenerji. A relevant decision was adopted on 22 November in a meeting of the permanent parliamentary commission. The document was signed in Baku on 27 June.
The bank allocated €30mln for the project which envisages the construction of electricity lines covering 195km from the State Regional Electricity Station to Imishli. The loan was given with the rate of 0.75% for the term of 12 years. The first two years are the grace period and in this period rates will not be paid. The German bank will receive the dividends in the amount of €7.6mln.
In accordance with the agreement, an executor of the project on the construction of electricity transmission lines Mingachevir Thermo-Power Station - Imishli - Azerenerji should use loan by 2009 and repay it by 2019. An international tender will be held to select a contractor company for the construction of the Mingachevir thermo-power station - Imishli. Under the project it is planned to lay 150km-long electricity transmission line Mingachevir thermo-power station - Imishli and the construction of a subsidiary power station.
Valeh Alasgarov, the deputy chairman of the Milli Majlis, the chairman of the permanent parliamentary commission on natural resources, energy and ecology, said that the project will fully solve the problem with electricity supply in the southern region of Azerbaijan. At the same time should Azerbaijan becomes an exporter, electricity can be supplied via the Mingachevir-Imishli line to Iran.
After the discussions the commission adopted a loan agreement and passed to the Milli Majlis.