German bank ready to increase funding for real estate cadastre in Azerbaijan
Azerbaijan, Baku, Sept. 15 / Trend I.Khalilova /
The German development bank KfW is ready to allocate an additional 15 million euro to create a real estate registration system and cadastre in Azerbaijan's Sheki and Ganja regions, head of the KfW Baku Office Natig Abdullayev told Trend today.
"The initial funding was approved in the amount of 2.5 million euro, but an additional 15 million euro will be allocated to cover all of the real estate information in these regions," he said.
The initial funding was provided on confessional terms (40 years with a grace period of 10 years at a rate of 0.75 percent per annum). The additional credit will also be allocated on acceptable terms and designed for a maximum of 15 years.
The Azerbaijani State Property Committee is expected to sign a contract in the coming weeks with the project consultant GFA.
"The contract will be designed for eight months with a budget of 433,000 euro," Abdullayev said. "The consultant is tasked with preparing the conception phase - the basis for the project to establish a real estate registration system and inventory in Sheki and Ganja."
He added that the question of receiving additional funds from the bank depends on the concept.
"Once we have positive results from our cooperation with the World Bank, then we will use the first credit worth 2.5 million euro to implement this similar project and obtain extra financing," Abdullayev said.
The project involves creating systematic cadastre in Ganja and Sheki to register land plots and real estate. Their exact position will be included on a cadastral map through geodetic studies.
The real estate registration project will differ from an earlier WB project as the cadastre will include refined data and geodetic coordinates. The cost of the WB project ran roughly $38.57 million. The bank's credit share in the project was $30 million.
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