Azerbaijan, Baku, April 29/Trend, I. Khalilova
The Asian Development Bank (ADB) is prepared to assign a loan of $160 million as supplementary financing for the Masally-Astara motorway construction project, the ADB Baku Office reported on Friday.
The financing may be implemented at the expense of the third loan of the Multitranche Financing Facility (MFF) for road projects in Azerbaijan, which was approved in the amount of $500 million in August 2007," the ofice said.
The MFF third loan had been designed for the reconstruction of a section of the motorway Ganja-Gazakh, but it was decided to redirect the loan for the motorway Ganja-Gazakh as supplementary financing, in order to speed up the project.
The project is valued at a total of more than $400 million. The ADB assigned $200 million for the reconstruction of motorway Masally-Astara whereas another $49 million were assigned by the Government of Azerbaijan.
Azerinsaatservis was selected as the contractor for the first section. The contractors for the remaining two sections will be determined through a tender soon.
As the value of the project has increased, the consultant made necessary changes in the estimate of expenditures, which had been prepared in 2008.
Of the MFF, the ADB has already assigned $255.4 million. The first, $200 million-worth loan is assigned for the construction of motorway Masally-Astara, and the second loan of $55.4 million is for the reconstruction of the Ganja circular road.
The entire MFF package is likely to be explored prior to 2014.