Azerbaijan Ready to Appeal to WB on New Road Projects

Business Materials 7 August 2008 17:46 (UTC +04:00)

Azerbaijan, Baku, 7 August / Trend corr. I.Khalilova / Azerbaijani Transport Ministry defined the highways to propose to the World Bank for financing," the Ministry reported on 7 August. The list of the projects has been initially submitted to the Cabinet of Ministers for consideration.

The list includes projects to reconstruct the plots in the Imishli -Muganli, Yevlakh- Balakani and Alat - Shorsulsu highways. It is planning to carry out straightening on the Alat- Shorsulu highway and construction works on the other plots.

At present, the bank has been financing two complementary projects in Azerbaijan. Within the framework of the first project some $200mln has allocated to extend and change the Alat - Masalli highway, as well as to repair the Baku - Shamakha - Mugan road, which connects Baku with the west regions. The credit was approved in 2006. The second credit in $300mln, which was approved in April 2008, envisages to upgrade the Alat - Masalli road, as well as to rehabilitate the Kurdamir- Ujar section, Baku - Georgian border highway, Baku - Shamakha highway, to reconstruct the highway in the Tagiyev - Sahil settlement and to rehabilitate some other roads.

Project's target is to cut the cost of the road and transport projects and to increase access, transit and road security through modernization and rehabilitation of the chosen plots in the East -West and North -South corridors.

The infrastructural projects WB finances via the International Reconstruction and Development Bank, i.e. loans are allocated for 20 years term with four years privileged term and interesting rate libor+0.5%.

On 7 August, the official currency rate is 0,8097 AZN/USD.

The correspondent can be contacted at: [email protected]