Azerbaijan, Baku, Dec.29 / Trend E. Ismailov /
"Azerinshaatservis" Construction Company, which has become the winner of the tender within the Asian Development Bank's (ADB) project for construction of the highway "Masalli-Astara", will start construction works on the first section "A" from early 2011, a source at the Azerbaijani Transport Ministry said.
According to him, recently a contract was signed with the contractor.
"The company will carry out the construction of the highway with length of 22.15 kilometers. Contractors have not been determined on another two sections," the source said. Contractor should construct a two-lane road, two road crossing, 10 bridges, drainage system and one overpass.
The source said all the issues related to resettlement of people living along the road section have been already agreed on the "A" section, while issues related to purchase of land at the "B" and "C" sections remain open. On these sections contractors will be determined in the first quarter of 2011. According to the ADB's conditions, a contractor may be announced only after the completion of land purchase along the road.
The road will be constructed after acquiring a loan of $200-million from ADB, with the government's contribution being $49 million.
Tenders for two sites of the Masalli-Astara Highway, which is divided into three sections, have been closed and the process of evaluating the companies' propositions is underway.
The ADB Board of Directors approved the project on Sept. 28, 2007 and under the agreement, the bank has issued loans worth $190 million partially from its common resources for a period of 24 years, with a four-year grace period and carries an interest rate of 0.6 percent. Loans were also issued at $10 million under preferable conditions for 32 years, with an eight-year grace period and one-percent interest rate.
Preferential part of the loan is intended for the reconstruction of secondary rural roads joining the highway.
The total length of the new highway Masalli-Astara will be 62 kilometers.
Credit for the highway was allocated within the Multitranche Financing Facility Mechanism with a total of $500 million to finance the three road projects. The bank has given a deadline up to 2014 to use the remaining funds.