IDB approves large financing of energy project in Azerbaijan
Azerbaijan, Baku, October 22 / Trend N. Ismayilova /
The Board of Executive Directors of the Islamic Development Bank (IDB), which concluded its 262-nd session under the chairmanship of President of the Bank, Ahmad Mohamed Ali, on October 20, approved financing of Azerbaijani energy project worth $200 million, the bank said.
The message said that the Board of IDB Executive Directors approved financing of the project to construct 800-megawattt new station Cenub (near Alibayramli thermal power station). The funds will be given on Istisna principle.
Consortium of three banks, including Bayerische landesbank, Societe Generale and Credit Suisse will also finance the project. The loan worth €300 million was given under state guarantee for 10 years.
Loan of the bank consortium will cover half of operations connected with construction of the station. Cenub station will operate both on gas and black oil. Construction operations at the station are held by Azerbaijani company AZENCO.
During this session, the Board approved new finances totaling $ 552 million for development projects in seven member countries including Albania, Jordan, Indonesia, Azerbaijan, Pakistan, Burkina Faso and Benin.
Details of the Board approvals during the session are as follows:
DEVELOPMENT PROJECTS -
$ 30 million Istisna'a financing for the Reconstruction of Secondary and Local Road Project - Albania;
$ 80 million for the Construction and Operation of the Electricity Station of Alqatrana (373)MW in Alqatrana town. Jordan;
$ 140 million Installment sale financing for the Pakistan Railways Development Project (Phase-III) - Pakistan;
$ 31.2 million Istisna'a financing for the Development of Medical Education & Research Centre and Two University Hospitals Project - Indonesia;
$ 9 million Loan financing for the Construction and Equipping of a Hostel for the Students of the University of Bobo-Dioulasso - Burkina Faso;
$ 20 million Loan financing for the Construction of Kandi - Segbana - Nigeria Border Road - Benin.
The IDB approved $ 3.9 million as a contribution to the paid up capital of the first Islamic commercial bank to be established in Sri Lanka.
It allocated the grant worth $2 million for the participation in financing of the Second 5-year Facility of the Public Enterprise Partnership of the Middle East and North Africa (PEP-MENA 2).
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