Islamic Development Bank Mission’s Visit to Azerbaijan on Water Project Fixed
Azerbaijan, Baku, 21 July/ Trend , corr I. Khalilova/ The Islamic Development Bank (IDB) plans to send a mission to Azerbaijan to assess the project on the full restoration of water supply system in three small towns in detail, a source in the Cabinet of Ministers of Azerbaijan said. The visit of the assessment mission was postponed more than once.
According to the preliminary estimations, IDB plans to grant some $47mln-$48mln. Gives the fact that the maximum amount of the soft credit by IDB makes up 7mln Islamic dinars, ($10.5mln), the project may be financed commercially. The government asked soft credit for this project and it can be granted if the funds are allocated by tranches.
IDB project covers Agjabadi, Balakhani and Beylagan. Though, earlier the water project covered six small towns, three regions including Dashkasan, Gadabay and Davachi were excluded later as the deadline for the preparation of the assessment document did not suit Azersu. These regions may join the water projects financed by other international organizations.
The water project is included in the new cooperation program with IDB for 2008 and 2010 and was put for financing in 2008 fiscal year which will end in April 2009.
A total of AZN1.4bln is required to finance public utility projects in 61 region and towns of Azerbaijan. Talks are held with Asian Development Bank, IDB and Japanese Bank for International Cooperation.
Besides the water project, IDB program also includes reconstruction of Bahramtapa highway, reconstruction of Mil-Karabakh collector and consolidating debt management potential of Cabinet of Ministers. Three- year term program includes 10 projects with a preliminary cost of $220mln.
The official exchange rate for 21 July is 0,8056 AZN/USD.
The correspondent can be contacted at: [email protected]