Azerbaijani President approves loan agreement with Saudi Fund for Development
Azerbaijan, Baku, April 16 / Trend /
Azerbaijani President Ilham Aliyev approved the loan agreement between the government and the Saudi Fund for Development within the project "Expansion and reconstruction of water supply and sewerage system of towns and villages around Baku".
The loan agreement was signed in Baku November 20, 2009.
The agreement provides for the allocation of the loan worth 93.750 riyals (about $25 million) by the Saudi Development Fund to finance a project worth $63 million. Under the loan agreement, the loan 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 repair water supply and sewerage system in compliance with international standards in the residential area "20 sector" in the zone of Bibi Heybat in Baku, as well as in nearby towns of Bail and Badamdar within the project.
The project provides for laying of 72 kilometers of sewerage systems, construction of two sewage pumping stations. The settings are designed to clear 50,000 cubic meters of wastewater. Today, about 1,200 hectares of 2,700 hectares of the territory are vacant. This territory is inhabited by 58.500 people. The population is expected to increase up to 170,000 people through the construction of new residential areas in the nearest years.
The project is designed to December 31, 2011.
The Fund has financed three projects in Azerbaijan since 2003. About $9.5 million were allocated for the construction of five schools in Baku, $18 million - for the reconstruction of the Samur-Absheron canal - Velvelichay-Tahtakerpyu and $13 million - for highway Yevlakh-Ganja.