Azerbaijan, Baku, 3 July / corr Trend I.Khalilova / The Azerbaijani Ministry of Economic Development is studying opportunities for attracting funds to the construction of the first garbage processing burning plant in Baku, Asgar Alakparov, head of the Investment Policy Department at the Ministry said. The consultations on general terms of financing have been set up with foreign commercial banks and international financial institutions.
The European Bank for Reconstruction and Development (EBRD) displayed special interests in the project. As the French company CNIM is a contractor for the construction of the plant (though talks over the contract are underway with this company), French banks BNP Paribas and Societe General, which have relevant experience, are prepared to financing.
The loan risk under such projects is insured by the German export instance agency HERMES and the French export insurance agency COFACE.
"The Government can finance the project partially of fully through the foreign resources," Alakbarov said.
At the initial phase of the project the financing can be carried out through funds assigned in the State Investment Program. На 2008 год в госпрограмме заложено на эти цели порядка 130 млн. манатов.
The Government's position on financial sources will be characterized upon the conclusion of a contract with project contractor. The Azerbaijani Ministry of Economic Development plans to continue the discussions on financial and technical terms of the contract with the French CNIM- winner of the tender on the construction of first combustion plant.
A total of four companies took part in the tender including the French CNIM, the Austrian EVN, the German Enconi and Russian Moskekostroy/Mosspetsstroy. The cost of the contract offered by the companies for the construction of plant ranges from €250mln to €50mln. The expenses of the construction will be covered by the government.
The plant is expected to be built in Balakhani, not away from the garbage collection ground. The annual capacity of the plant is supposed to make up 500,000 tons a year. The key condition for the contractor is to construct a plant with best cleaning technology and energy generation capacity. CNIM intends to partially use Martin's technologies (Martin is a part of the group).
At present, gas purchase (for trash burning) terms are being discussed with the contractor, as well as energy production to be supplied to the network (it has not yet been determined which company will supply the energy - Azerenerji or Bakielektrikshabaka) at the price set by the Tariff Council. The annual capacity of the power plant will make up 231MVt.
According to the official reports, about 1mln tons of domestic wastes are collected in Baku and in the suburbs.
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