Azerbaijani Parliament ratifies loan agreement with Saudi Development Fund
Azerbaijan, Baku, April 2 / Trend /
On Friday, the Azerbaijani Parliament ratified the loan agreement between the government and the Saudi Development Fund within the project "Expansion and reconstruction of water supply of towns and villages around Baku".
The loan agreement was signed on November 20, 2009.
The agreement envisages the allocation of the loan worth 93.750 Saudi rials (about $ 25 million) by the Saudi Development Fund loan for financing the project worth $63 million. Under the loan agreement, credit was allocated by the Saudi Fund for Development for a term of 20 years with a grace period of five years at an annual rate of two percent. The loan will be repaid by semi-annual trenches worth 3,125 million rials
It is planned to bring water supply in the residential area "20 sector" in Bibiheybat, as well as nearby settlements Bail and Badamdar with international standards.
The project involves laying of 72 kilometer-sewerage systems, construction of two sewage pumping stations. The plants are designed to clear 50,000 cubic meters of wastewater. Today, 1,200 hectares of 2,700 hectares of the territory are vacant. About 58,500 people live there. The population is expected to increase by 170,000 people through the construction of new residential areas in the nearest years.
The project is designed to December 31, 2011.
Three projects have been financed in Azerbaijan by the fund since 2003 up to now. About $9.5 million was allocated for the construction of five schools in Baku, $ 18 million - for the reconstruction of the Samur-Absheron canal - Velvelichay-Tahtakerpu and $13 million - highway Yevlakh-Ganja.