ADB plans to approve third loan to improve water supply system in Azerbaijan by late third quarter
Azerbaijan, Baku, May 18 / Trend I. Khalilova /
The Asian Development Bank (ADB) is ready to allocate $180 million for Azerbaijan to improve water and sewerage system, the ADB's Baku office said. The credit will be approved by the ADB Board of Directors till late third quarter of 2011.
"These funds are planned to be provided within the second multitranche financing tranche (MFF) to the amount of $ 600 million, approved by the ADB Board of Directors in September 2009," the bank said.
The consultations on this loan are planned to be held with the government in June.
"Last week, the preliminary discussions were held with the government during ADB curator for water projects Vijay Padmanabhan's visit to Baku," the bank's office said. At present, the Bank expects to receive the information on the directions of using the loan and the needs of each region for funds to restore water and sewage systems from the Azerbaijani side."
At present, ADB has financed two projects to improve water and sewerage systems. The first loan worth $ 30 million was allocated in 2004 to restore the water supply system in Goychay and Nakhchivan with its total cost worth $39.9 million. The office said that the term of the project will expire on June 30, 2011.
The first tranche funds will reconstruct water and sewage infrastructure in the towns of Goychay and Nakhchivan.
ADB's first tranche loan of $75 million has a 24-year term with a 4-year grace period and interest set according to its LIBOR-based lending facility. The Azerbaijani government is providing $25 million.
The list of regions in the project is expected to be expanded within the second tranche. It is planned to add Agdash, Agdjabadi, Beylagan and Balaken.
Contractor to carry out construction works in Nakhchivan selected as "Gemi Qaya", as executor of the project in this area is the State Committee for Land Reclamation and Water Management of the Nakhchivan Autonomous Republic.
The multitranche financing facility establishes the foundation for an 8-year partnership between ADB and the government, allows for phased investments, and is backed by a clear strategy and program of reforms in the sphere of water and sewerage system.
The AICO Consulting Ltd / European Consultans Organization is the consultant of Azersu on water project.