Azerbaijan signs two loan agreements with Asian Development Bank
Azerbaijan, Baku, Dec. 17/ Trend , I. Khalilova/ The Asian Development Bank (ADB) has signed agreements with the Azerbaijani government on rehabilitation of electricity lines and reconstruction of Ganja circular road, Baku office of the bank said.
Energy project costs $220mln and transport project - $73.9mln.
In September the Board of Directors of the Bank confirmed allocation of $160mln to realize this project. The project envisages construction of double circuit 220Kv transmission line from the Mingachevir Hydropower Station to the Absheron substation. Moreover, it is planned to unite 220/110kV substation with 110kV electricity transmission line.
The Bank allocated $55.4mln to realize the road project. 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. Increase in prices will be covered by the Multitranche Financing Facility (MFF) for road projects in Azerbaijan, which was approved in the sum of $500mln in August 2007.
Contractor of transport project has been selected and a contract is expected to be signed by the end of Dec. Tender to select contractor on energy project has not been issued yet. But the bank is not going to delay this process.
The Government cooperates with the ADB since 1999 and so far, the Bank has issued $304mln loan under a state guarantee to the country.
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