Azerbaijan, Baku /corr. Trend I.Khalilova / The mission of the Asian Development Bank's Transport Department headed by Hong Vang held talks with the Government of Azerbaijan with regards to the road projects in the Country, a source stated in the ADB Baku office on 5 December.
The review was held according to the project on the construction of the two final sections of highway YevlakhGanja and Gazakh-Georgian border. The construction will begin at the beginning of the next year.
A Government source stated that the contractor on the project has been determined. Initially the road from Gazakh to the Georgian border will be reconstructed.
The ADB allocated two credits for the reconstruction of the road ($49mln) and financing of border service components ($3mln).
The ADB credit makes up 55.8% of the project cost at $93.2mln. The remaining part will be financed at the expense of the Islamic Development Bank ($10.4mln), Saudi Development Fund ($11mln) and Government of Azerbaijan ($19.8mln).
In addition, the ADB mission discussed with the Government of Azerbaijan the possibility of accelerating the process of signing the credit agreement for the project on reconstruction of Masalli-Astara highway in amount of $200mln which was approved by the ADB Board of Directors on 28 September.
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.
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.