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Talks on ADB's additional financing for road project in Azerbaijan to take place in June

Business Materials 18 May 2011 23:02
Asian Development Bank (ADB) plans to hold official talks with the Azerbaijani government in the second half of June on the allocation of additional funding for the Masalli-Astara highway construction project,"
Talks on ADB's additional financing for road project in Azerbaijan to take place in June

Azerbaijan, Baku, May 18 /Trend, I.Khalilova/

Asian Development Bank (ADB) plans to hold official talks with the Azerbaijani government in the second half of June on the allocation of additional funding for the Masalli-Astara highway construction project," ADB Baku office said on Wednesday.

"At present, the technical details, particularly the need to update the plan to buy land along the highway are specified, we discuss the impact on the environment," the office said.
About $160-170 million will be allocated additionally to implement the ADB project.

The project 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.

Earlier, the MFF third loan was allocated for the Ganja-Gazakh Highway's modernization.
The road will be constructed using a $200-million ADB loan. The government's share is $49 million.

The contractor of the first section was the Azerinshaatservis construction company. The bidding procedure for two other sites has completed, and now the proposals are being evaluated. Exactly after the completion of this process, the final cost of the project and the necessary amount to be allocated by the ADB will be clear.

The consultant must make the necessary changes in the cost estimates prepared in 2008 due to the rising costs of the project. After this, the project cost will exceed $400 million.
The Asian Development Bank (ADB) extended the terms of a loan to Azerbaijan to reconstruct the Masalli-Astara Highway.

The loan will be extended until Dec. 31, 2013. Since the loan agreement entered into force in January 2008, the loan resources have remained nearly unused. Earlier the loan period was set to expire June 30.

Delays on using the credit occurred due to the fact that it was necessary to first implement the plan of redemption of land along the Masalli-Astara Highway to start the construction of the project. Under the terms of the loan agreement, the issue of land acquisition should have been settled prior to June 2010.

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