Azerbaijan, IDB sign agreement on energy project
Azerbaijan, Baku, January 5 / Trend , I. Khalilova /
The Government of Azerbaijan has signed with the Islamic Development Bank (IDB) an agreement on the project of building a new 800-megawatt Cenub station (near Alibayramli thermal power plant), for which the Bank has provided €134.4 million, a government source said on Jan. 5.
On behalf of Azerbaijan, the agreement was signed by the finance minister Samir Sharifov and the agent agreement by the head of Azerenerji JSC Etibar Pirverdiyev. The agreements were signed in late December.
The credit resources are provided by the IDB for a period of 17 years with a grace period of two years.
The total project cost is estimated at €664.1 million. Currently Azerenerji continues negotiating for additional external funding.
Funds worth €300 million were received from three banks - Bayerische landesbank, Societe Generale and Credit Suisse to finance this project. The loan was given for 10-year-state guarantee.
Currently negotiations are held to attract $220 million loan from commercial banks under guarantee support of the Asian Development Bank.
Cenub station will work both on gas and black oil.
Azerbaijani company AZENCO conducts construction operations at the station.
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