Azerbaijan, Baku /corr. Trend I.Khalilova / The World Bank (WB) expressed its readiness to present additional $200mln for the realization of the road projects in Azerbaijan, the reconstruction of the Baku circle road and the reconstruction of two highways, Alat-Masalli and Baku-Shamakhi-Mugan, said the WB Gregory Jedrzejczak in Azerbaijan.
Additional finances for the construction of roads were required due to an increase in the cost of the project. The cost of the project exceeds $50mln compared to the previous $19.4mln. The project was intended to be realized at the expense of funds from the Kuwait Development Fund ($14.9mln), Arab Development Fund Abu Dabi ($10mln) and Government of Azerbaijan ($3.5mln).
The re-established project includes the reconstruction of other roads. The rise in the project cost is explained through the necessity to transfer communications and the construction of other infrastructures which were not envisaged in the previous project. In addition, the prices of the construction materials had increased by 44-45%.
The second road project is financed by the WB. On 17 January 2006 World Bank to allocated $200 mln credit for the second highway on the terms of the International Bank for Reconstruction and Development for a period of 20 years under rate of libor+0,5%.