Azerbaijan, IDB sign loan agreement
Azerbaijan, Baku, June 24 / Trend I. Khalilova /
The Azerbaijani government and the Islamic Development Bank (IDB) signed a 150-million-euro loan agreement today to build a waste-processing plant in Baku.
The loan will be given for 15 years with a grace period of three years.
The plant's total construction cost is estimated at 346 million euro over a 36-month construction period. Construction is financed at the moment at the expense of budgetary funds.
The construction contractor is the French company CNIM. The company has rich experience in the field, having built over 120 household waste-incineration plants all over the world. The plant will be built within three years, and will reduce garbage in Baku by 10 times.
Today, 80 percent of all household waste in Baku and on the Absheron Peninsula is transported to a landfill on the plant's future construction area - called Balakhani - for open dumping.
The Azerbaijani Economic Development Ministry signed a turn-key contract with CNIM in 2008. The contract will be implemented on a design-build-operate basis.
Azerbaijan's IDB loan portfolio has reached $ 850 million for 40 projects.