Asian Development Bank and Azerbaijani Government Start Discussions on Second Tranche

Business Materials 7 August 2008 15:40 (UTC +04:00)

Azerbaijan, Baku, 7 August / Trend corr. I.Khalilova / Asian Development Bank (ADB) has launched the negotiations with the Azerbaijani Transport Ministry on the second tranche within the framework of the Multitranche Financing Facility (MFF) on highway projects approved in the sum of %500mln in September 2007. Some $200mln was allocated to re-construct the Masalli- Astra highway.

Within the framework of the second tranche ADB intends to finance the increase in the price of the project to reconstruct the west -east highways Yevlakh - Ganja and Kazakh - Georgian border. In Particular, additional $50-60mln may be allocated to construct Ganja city road.

The total cost of the first plot of the Yevlakh - Ganja highway with 88.8km is $58.7mln. Some $10.4mln is financed by the Islamic Development Bank, $11mln - Saudi Development Fund, $24mln - ADB and $13.3mln - the Azerbaijani Government. The construction of the second plot of the Kazakh - Georgian border with 38.8km length is $30mln, which is financed by ADB ($28mln) and Azerbaijan ($2mln).

Doong So Pyo, a new curator of ADB on Transport Projects in Azerbaijan, pays a visit to Azerbaijan to discuss the issues regarding allocation of additional finances. Before, Hong Wang, the leading economist on the road projects, took the curator position in the bank.

The total facility of the MFF is expected to be completed to 2014.

On 6 August, the official currency rate was 0,8093 AZN/USD.

The correspondent can be contacted at: [email protected]