Azerbaijan, Baku, Dec. 21 / Trend I. Khalilova /
KfW Development Bank expects the Azerbaijani government to agree to sign an intergovernmental agreement within the program of developing renewable energy sources and energy savings in Azerbaijan, the head of KfW Baku's office Natiq Abdullayev said.
"The bank increased the volumes of funding for the energy sector. It is ready to support any projects in this area, related to the construction of a wind power station, and using solar energy or any other opportunities to ensure energy efficiency," Abdullayev said.
Earlier the bank stated its intention to allocate a 40-million-euro loan to Azerbaijan to develop renewable and alternative energy sources. However, the amount was significantly increased in the proposal. Abdullayev refused to disclose the exact figure. KfW is ready to fund projects through local banks. Specifically, the bank is interested in energy projects so long as it obtains a state guarantee.
The bank received an approval from the Azerbaijani government on state guarantees for financing projects in this sector.
KfW has financed several projects in the Azerbaijani energy sector, including the construction of power lines in Imishli. The bank allocated 30 million euro for the project. The credit was provided at a rate of 0.75 percent per annum for 12 years, with a two-year grace period.