ADB to Sign Two Loan Agreements with Azerbaijan in December

Business Materials 22 November 2008 13:21 (UTC +04:00)

Azerbaijan, Baku, 22 November / Trend , corr.U.Ismayilova /The Asian Development Bank (ADB) is ready to sign a loan agreement with Azerbaijan on the project to rehabilitee power lines and reconstruct the circumferential road in Ganja City in the early of December, Vice President of ADB Xiaoyu Zhao said in Baku.

"The delay in the signing of the agreement is not related to the Azerbaijani Government. The document will be signed after the interior-state procedures are completed, that is expected in the early of December," Zhao said.

The signing of agreements on the energy project with cost of $220mln was expected during the visit of the Vice President of ADB Xiaoyu Zhao on 19 November and on the transport project ($73.9mln)- during the visit of President of ADB Haruhiko Kuroda to participate at the ministerial conference on the Central Asia Regional Economic Cooperation (CAREC) program.

In September, to the realization of the first project the board of directors ADB approved the issue of $160mln credit. The construction of two-circuit 220 kV of power line from the Mingachevir hydroelectric power plant to the Absheron substation is planned to carry out within the project. In addition, the association of 220/110 kV of substation with 110 kV of power line is also envisaged.

Some $55.4mln has already been allocated. Highway's length is 39km. This plot of the highway enters into the project to reconstruct the west and east plots of the Yevlakh-Ganja and Kazakh-Georgian border, where the Asian Development Bank has also invested, but additional funds were required due to increase in prices of the project. The rest share of investments will be allocated from the Multitranche Financing Facility (MFF) for road projects in Azerbaijan, which was approved in the sum of $500mln in august 2007.

Azerbaijan cooperates with the Asian Development Bank since 1999. As for today, bank approved $304mln loans to the Azerbaijani Government under the state guarantee.

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