Saudi Arabian Development Fund to issue fund to improve Baku water supplies

Business Materials 30 March 2010 12:50 (UTC +04:00)

Azerbaijan, Baku, March 30 / Trend U.Ismayilova / 

The credit agreement on granting a loan, which was signed between Azerbaijan and the Saudi Arabian Development Fund, under a project to expand and reconstruct Baku's water and sewerage system is expected to be ratified by the country's parliament in early April, the government reported. The loan agreement was signed Nov.20, 2009.

"Based on the agreement, the fund will allocate a loan worth 93.750 riyals (about $ 25 million) to finance the project worth $63 million," Azersu joint-stock company reported.

The project will be conducted in accordance with international standards. The repairs on sewer lines and water supplies will be conducted in the Bibiheybat zone and surrounding areas.

Under the agreement, credit will be allocated for 20 years with a grace period of five years, according to an annual rate of two percent.

To date, the fund has financed three projects in Azerbaijan. The fund allocated 9.5 million for the construction of five schools in Baku, $18 million - the reconstruction of the Samur-Absheron and Velvelichay-Takhtakorpu channels and $13 million- reconstruction of the Yevlakh-Ganja highway.

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