Azerbaijan, Baku, May 19 / Trend , I.Khalilova /
This week the World Bank (WB) will begin official negotiations on a road reconstruction project Hajigabul-Bahramtepe, for which in the 2009 fiscal year, the Bank plans to provide $63 million preferential loan, the WB Baku office said.
The Bank plans to provide $175 million for the construction of roads with length of 116 kilometers. Accordingly, $112 million will be financed through the IBRD.
Before, the privileged credit was planned to direct for construction of the Baku-Shamakha-Mugan highway from two lines to four lines, but due to the fact that the international standards required environmental assessment, public discussion within 120 days, to complete these procedures before the end of June would be impossible. [Preferential loans are envisaged for 2009 fiscal year, which expires June 30.]. In addition, there are plans to repair the existing road on the Hajigabul-Bahramtepe highway.
"In order not to lose the preferential part of the funding it was decided to direct it towards reconstruction of Hajigabul-Bahramtepe that does not require these procedures, the relocation of residents along the road, purchasing land," the same source said.
The total cost of the project is $200 million.
Furthermore, in parallel the preparation will be held for the Baku-Shamakha-Mugan highway construction project.
Highway's length is 124 kilometre. Under the project, construction of the road is $90.11million. Some $72.09mln is expected to be paid by WB and $18.02mln will be invested by Azerbaijan. The Azerbaijani Transport Ministry already devised new accounts doe to raise in the cost of project and change in the plan of construction (under the plan the road will consist of four lines).
The Italian Todini Costruzioni Generali S.p.A. company was chosen the general contractor of construction works. Project's consultant is the Finnish Finroad company.
Construction of Tovuz circumferential road is expected to be implemented within the project. Road's length is 7.2 kilometre.
Baku-Shamakha-Mugan highway will connect Baku with west regions in the country. Project's main goal is to cut transport expenditure, increase of access, transit and security to pass the Azerbaijani East-West corridor.
The highway project was approved by WB Board of Directors on Jan.17, 2006. Loans are allocated via the International Bank of Reconstruction and Development for 20 privileged years in four years and libor+0.5% interesting rate.
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