Azerbaijan, Baku, August 11 / Trend E. Ismayilov /
The Baku-Shamakhi-Mughanli Highway will be commissioned in two years, Azerbaijani Transport Minister Ziya Mammadov said today.
The ministry and the World Bank signed a credit agreement today to finance the highway's reconstruction in Baku.
Mammadov said the road will be expanded from two to four lanes.
"The reconstructed road will open in two years," he added.
The bank will allocate $241.6 million to finance the project in the form of mixed credits - $70 million will be funded by the WB International Development Association (IDA), and $171.6 million will be provided by the International Bank for Reconstruction and Development (IBRD). The remaining funds will be provided by the state. The total project cost is $356.15 million.
The IDA credit resources were allocated for a period of 20 years with a grace period of 10 years, and the IBRD funds were provided over 17 years with deferred payments in four years.
Baku-Shamakhi-Mugan is 122 kilometers in length. A total of 101 kilometers will be built within the project. The remaining section of the road has already been constructed.