Azerbaijan, Baku, Feb. 4 / Trend I. Khalilova, E. Ismayilov /
The Asian Development Bank (ADB) is ready to allocate additional funding in connection with the rising costs of the Masalli-Astara Highway construction project, the bank's Baku office said.
"It can be financed from the third tranche of the Multitranche Financing Facility (MFF) for road projects in Azerbaijan, approved to the amount of $500 million in August 2007," the office said.
Earlier, the MFF third loan was allocated for the Ganja-Gazakh Highway's modernization.
The ADB did not specify the amount of additional funding. It will be specified on the results of a tender, which is held to determine the contractor for the second and third sections of road.
The contractor of the first section was the Azerinshaatservis construction company. The bidding procedure for two other sites will be completed in April. The consultant must make the necessary changes in the cost estimates prepared in 2008 due to the rising costs of the project.
Azeryolservis told Trend that, according to preliminary data, the total project cost exceeds $400 million for the reconstruction of Masalli-Astara.
The bank allocated $200 million to reconstruct Masalli-Astara, while the Azerbaijani government's share hit $49 million.
The ADB has allocated roughly $255.4 million from its multitranche package. The first tranche worth $200 million was allocated for the construction of the Masalli-Astara road, and the second tranche ($55.4 million) was allocated for the reconstruction of Ganja ring road.