Azerbaijan, Baku, Dec. 19 / Trend , N.Ismayilova/ Azerbaijan and the World Bank (WB) inked a $505.2mln loan agreement on a project of construction of the third motor highway in Azerbaijan, the WB Baku Office said on Dec. 18.
The WB Board of Directors allocated $300mln to realize the project on Apr. 29 in 2008. Loan resources will be issued through the International Bank for Reconstruction and Development for 17 years with four-year grace period and libor+0.05% interest rate.
Samir Sharifov, the Azerbaijani Finance Minister, signed a guarantee agreement on the behalf of the Azerbaijani government, Ziya Mammadov, the Transport Minister - a project agreement and Gregory Jedrzejczak - head of WB Baku Office on the behalf of the Bank.
The project targets to cut cost of road and transport projects and to raise access, transit and road security of modernization and rehabilitation of chosen sections, as well as existing corridors of East-West and North-South.
The first component includes modernization of the third highway Alat-Masalli, rehabilitation of Kurdamir-Ujar section, existing highway Baku-Georgian border, rehabilitation of existing highway Baku-Shemaha, reconstruction of highways of Tagiyev-Sahil settlement (bypass of Baku) and rehabilitation of several neighbor roads.
The second component envisages providing technical assistance, trainings, as well as stock to support the Transport Ministry in realization of the project.
The first WB credit, within this road project, totaled $200mln- which was allocated on terms of the International Bank for Reconstruction and Development (for a period of 20 years with a grace period of four years and libor+0.5% interest rate). The Government of Azerbaijan allocated $65mln for the first phase of the project.
The total cost of the project is estimated at $770mln. The project envisages expanding and changing the highway Alat-Masalli, repair of the Baku-Shemaha-Mugan highway and construction of a circular road from Sahil settlement to Z.Tagiyev settlement.
Have any feedback? Contact our journalist at [email protected]