Azerbaijan, Baku, 14 April /corr. Trend I.Khalilova / The Government of Azerbaijan presented feasibility study to the Islamic Development Bank (IDB) with regards to the water supply system re-establishment project in three small cities of Azerbaijan (Agjebedi, Balaken and Beylagan) and Bahram-Tepe highway reconstruction project for being financed through 2007 budget, a source stated at Azerbaijan Cabinet of Ministers on 15 April.
There are plans to submit three projects to Islamic Development Bank to receive the privilege, one commercial credit and the technical assistance. The projects envisage restoration of water supply system in Azerbaijani three small cities (Agjabadi, Balakan and Beylagan), reconstruction of Bahram-Tapa road and development of T-bills for reconstruction of Mil-Karabakh collector.
In general, the 2007-2009 co-operation program includes ten projects, which were coordinated between the bank and Azerbaijani Ministry of Economic Development on the basis of signed memorandum. However, the closing list of the projects is expected to be approved by the Cabinet of Ministers.
The program sustained certain changes and two agricultural projects were added to the project. But, the project on technical assistance to improve potential of State Committee on Management of the State Property of Azerbaijan was removed. In the next three years, it is planed to finance construction of the road Ujar-Zardab-Agjebedi, increase electricity transmission lines in Absheron and reconstruction of Mil-Karabakh collector.
The portfolio of IDB-approved projects for Azerbaijan totals nearly $230mln. Out of all the projects, only five were financed on commercial terms in amount of $166mln. The projects were directed towards the construction of the road Alat-Kazimahamad, Mingachevir electricity station, Ujar -Evlakh road and Khachmaz substation.
The maximal amount of the IDB privilege credit makes up $10.5mln, but one commercial credit totaled $20mln. However, 2.5 years ago the bank made a decision to increase this amount up to $100mln.
Azerbaijan became one of the first countries that received this amount. In 2007, $80mln was allocated for the realization of the second stage of Mingachevir electricity station.
Official rate of AZN made up 0.831 to 1 USD.
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