Azerbaijan, Baku, July 5 / Trend I.Khalilova /
The Azerbaijani government will finalize the financial terms of a project to build an 800-megawatt thermal power plant with a consortium of foreign banks this week. The Asian Development Bank (ADB) is rendering support as the project's guarantor.
The ADB Board of Directors approved $232.32 million in warranty support for the project June 22.
Societe General, BNP Paribas and City Bank were chosen to enter a consortium to finance the project. The loan will be issued for 13 years with a privileged period of three year and a libor rate of +1.55 in accordance with the bank's proposals.
Azerenerji's guaranteed assistance will be ADB's first experience in the South Caucasus.
The project cost is 664.1 million euro. In 2010, relevant agencies will allocate 117 million euro for construction. At the moment, 434 million euro have been approved for the project. The government believes attracting funds under the ADB guarantee will conclude project financing.
Bayerische Landesbank, Societe Generale and Credit Suisse allocated 300 million euro for the project. The banks issued a loan under a state guarantee for 10 years. These resources will cover half of the construction costs.
The Islamic Development Bank approved 134 million euro in loans Oct. 20, 2009. The station will operate with gas and fuel oil.
The ADB has cooperated with the Azerbaijani government since 1999.