Azerbaijan, Baku, November 18 / Trend , E.Ismaylov /
The tender procedure for the determination of the general contractor for the construction of the first stretch (23 kilometers) of Masalli-Astara highway, funded by the Asian Development Bank (ADB) jointly with the Government of Azerbaijan, can be delayed until early next year, a source at the Ministry of Transport of Azerbaijan said on Nov. 18. Earlier it was planned to complete the process of determining the contractor by the end of 2009.
"The tender commission has not yet begun to consider proposals of participants, so the assessment process may be delayed until early 2010," said the source.
Delays in beginning construction of roads are associated with the difficulties in purchasing land from the people living along the road. "The question of compensation is very difficult, primarily due to valuation of land," the source added.
The Masalli-Astara Highway is divided into three sections. However, land must be purchased from the public using budget funds before construction may commence. Thirty million manat was previously allocated for the project. However, the costs will reduce under the new procedures as land prices have decreased in Azerbaijan.
The ADB Board of Directors approved the project Sept. 28, 2007. Under the agreement, the Asian bank issued loans worth $190 million partially from its common resources for 24 years with a four-year grace period and libor +0.6 interest rate. Loans were also issued at $10 million under preferable conditions for 32 years with an eight-year grace period and one-percent interest rate.
Credit for the Masalli-Astara Highway was allocated within the Multitranche Financing Facility mechanism with a sum total of $500 million to finance three road projects. Two projects worth $255.4 million have been coordinated. The bank has provided up to 2014 to use the remaining funds.
Official rate on Nov. 18 is 0.8029 AZN/USD.
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