Azerbaijan, Baku / corr Trend I.Khalilova / The visit of Japanese Bank for International Cooperation (JBIC) mission to Azerbaijan aimed at developing a project on improvement of water supply and sewerage system, which was planned originally scheduled for 11 December, has been postponed for two or three days, the Azerbaijani consulting company ASPI said on 12 December..
Nizamaddin Rzayev, the head of Azersu company, considers work with JBIC on water issue successful, because it is developing rapidly.
"We did not expect that we can hold negotiations and develop the project during short timeline. It is possible to sign a credit agreement with JBIC in the first quarter of 2008, unless it occurs this year," Rzayev said.
Japanese bank agreed on expanding a list of districts to be included in this project. Although a preliminary feasibility study was developed with the consideration of six districts, the number of regions increased to 10 (Shamakha, Salyan, Neftchala, Barda, Guba and others.) in line with the agreement.
The budget of the project will comprise $300mln - $350mln. JBIC offered the Azerbaijani Government a $260mln loan despite $160mln - $180mln offered earlier.
The bank also offers to allocate loan with the rate of 0.14% for the reconstruction of sewerage system and 0.65% for water supply. Softening conditions for sewerage system is explained with the cost of service, which is expensive in Azerbaijan for water.
The water supply system improvement envisages actions on building of water intake, treatment, delivery and distribution, and on sewerage system transportation, cleansing and throwing.
In October 2008 it is planning to begin relevant work and the Board of Directors of JBIC can apprive the project at the beginning 2008.
The feasibility study of the project was developed by a Tokio Engeneering/ASPI consortium.