Azerbaijan, Baku, August 11 / Trend I. Khalilova /
The Asian Development Bank (ADB) and the Azerbaijani government plan to hold official talks on multi-trench financing to the amount of up to $600 million to restore water supply and sewerage systems in Azerbaijan and loan agreement on the first project in Baku on August 14-15, Baku's representation of the bank said on August 11.
"The first line of MFF is expected to be approved at ADB directors' board in late September," the representation said.
The first trench of MFF to the amount of $75 million is envisaged for partial payment of project to improve water supply system and sanitary services in Agdash, Goychay and Nakhchivan.
"More funds are necessary for full payment of the project. Further expenses can be paid off as soon as it is realized owing to MFF," the representation said.
Funds of the first trench are also envisaged to pay additional expenses due to rise in the cost of project to improve water supply system and sanitary services in Agdash, Goychay and Nakhchivan. (Earlier, rise in the cost of the project was planned to be paid off owing to increase of share holding of the Azerbaijani government in the project).
The second trench is expected to cover expansion of coverage zone of this project for other three cities - Agjabadi, Beylagan and Balaken.
The third trench is envisaged to allocate for creation of centralized water supply and sewerage systems around Baku.
Current design of the first draft (to improve water supply system and sanitary services in Agdash, Goychay and Nakchivan) was prepared in 2004. But prices for construction materials rather increased, especially there is increase of expenses for sewage system during this period. Installation of modern facilities in sewage system of regions covered by the project, proposed by Azerbaijan, also affects its cost. Moreover, ADB project envisages complete restoration of water supply and sewerage systems in selected regions.
Initial cost of the project hit $39.9 million. First, ADB allocated loan to the amount of $30 million to finance the project but $9.9 million fell on the government.
AICO Consulting Ltd/European Consultans Organization is consultant of Azersu JSC. Consultant prepared report on detailed operations envisaged within project for three years.
Structural changes are planned to be made to develop water supply system, infrastructure in Agdash, Goychay, Nakhchivan, Agjabadi, Beylagan and Balaken by 2010.
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