Azerbaijan and French Bank Define Cost for Highway from Muganli to Yevlakh
Azerbaijan, Baku, 21 July / Trend corr. I.Khalilova / The Azerbaijani Transport Ministry defined the cost for the highway from Muganli to Yevlakh (156km), which is a part of the highway from Baku to Shamakha. The project is financed by the French bank BNP Paribas. The cost of the project is $250mln.
Bank will allocate $320mln to finance the project. The project was agreed in Baku on 13 June. The funds are allocated for two projects - from Muganli to Yevlakh and from Yevlakh to Georgian border (M-4) with length of 164km. BNP Paribas has allocated the funds through the Israeli insurance corporation ASHRA.
The issues concerning the second highway project is being held, as T-bills is being agreed taking into consideration the inflation rate in the country.
GDP tax over all imported goods, services and works, which have been implemented at the expense of international credits, will also affect rice in price of the project.
The credits are rendered for 14 years term through privileged period of four years and libor+0.45% rate per year. The construction process is expected to be completed within four years.
This will be the first credit agreement with BNP Paribas on the highway project.
On 21 July, the official currency rate is 0,8056 AZN/USD.
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