ABD to Start Implementation of Water Project in Azerbaijan in Summer
Azerbaijan, Baku, 31 March / Trend corr. I.Khalilova / Consortium AICO Consulting Ltd/European Consultants Organization, consultant Azersu OJSC on the project of 'Improvement of water supply system and sanitary services in Agdash, Goychay and Nakhchivan' have started the execution of their respective obligations, Asian Bank of Development (ABD) Baku representative stated. The first contracts on implementation of the contract work are expected in June or July.
ABD jointly with Azersu developed plan of events for next two years to implement the work. Task Groups were set up to implement projects in each region.
Consultant will develop a report on detailing work envisaged for three years. The current design of the project was developed in 2004, while the cost of construction materials has increased several times during this period. The cost of the project has increased by $5mlnwithin the three years. Any increase in the cost will be covered at the expense of increased share of the Government.
The initial cost of the project made up AZN $39.9mln. ABD allocated $30mln and government - $9.9mln to finance the project. There are plans to hold structural changes in order to develop water supply system and infrastructures in Agdash, Goychay and Nakhchivan till 2010.
ABD credit consists of two parts: some $20mln was allocated on privilege grounds by ABD Asian Development Fund for 32 years with eight years deferred payment. During the privilege period, the annual interest for the percentage payments rate will comprise 1%, and 1.5% after the end of privilege period. Rest part of the credit $10mln is allocated on usual grounds of ABD for 25 years- with six years deferred payment and interest rate according to libor.
A tender is announced to attract a contractor for the construction work. The institutional reforms were carried out through assistance of New Zealand company Castaliya and Azerbaijani AzSpetsPromInvest Consulting Engineers (ASPI). Consortium launched to render its service in March 2006.
The demands of ABD on reforming of water systems in Agdash and Goychay have been implemented. The process on turning them to regional joint-stock company was completed. Municipalities participate in Directors Council of Water OJSC in compliance with the ABD conditions. Tariffs will increase, rather double after the implementation of project. Right now, the water tariffs in Agdash totals AZN 1 per family and AZN1for the sewerage system, and AZN 4 for water and sewerage service in Goychay region.
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