Azerbaijan, Baku, July 26 / Trend, I. Khalilova /
German bank KfW attracts a consultant to prepare the second phase of the project of restoration of supply and sewerage system in the cities of Ganja and Sheki, the Bank's Baku Office head Natig Abdullayev said July 26.
"Initially, the Bank expressed a desire to allocate63 million euros for implementation of the second phase, but after the development of the feasibility study of the project consultant will finalize the total cost. KfW is ready to increase amount of funding for this project," Abdullayev said.
He said additional funding will be allocated for full coverage of the regions in terms of improving water supply system, installation of modern cleansing facilities for sewage systems. Earlier, it was reported that KfW will allocate 23 million euros for this purpose, and the remaining costs felt to the Azerbaijani Government.
Continuation of the project will fully allow connecting two cities to a new system to improve water supply and sewerage services. It was excluded from the first phase to use the remaining funds for the development of water systems of Ganja and Sheki at the request of the government. Moreover, these activities will be conducted without interruption between the completion of the first and the beginning of the second phases of the project. At present, tender on selecting a contractor in the first phase of the project is underway, and it is expected that construction works will be launched by late 2010.
The first phase of the project envisages improving the quality and reliability of water supply and sewerage system in the cities of Ganja and Sheki with a budget of 55 million euros. KfW will give loans worth 37 million euros, and Seco - 10 million euros in the form of a grant to realize the project in accordance with the agreements signed in Bern in October 2006. The share of the Azerbaijani government in the project is eight million euros.
Meanwhile, the Azerbaijani government and "Azersu" JSC requested the Swiss State Secretariat for Economic Affairs (Seco) to finance for the continuation of this project, but final decision hasn't been yet approved by the State Secretariat.
A consultant of the bank on the first phase of the project is a Swiss consulting company Colenco. Besides preparing the technical conditions of the tender, its task includes the institutional improvement of Ganja and Sheki water systems. Activities to improve the structure of water systems and construction work will be conducted in parallel.