Azerbaijan, Baku, June 1 / Trend I.Khalilova /
Asian Development Bank (ADB) Transport and Communications Division Director Hong Wang will visit Azerbaijan in early June, the ADB Baku Office reported. He will attend the next meeting of the CAREC program summit.
Wang is the chief coordinator of CAREC, which will hold a meeting in Baku on June 6-9.
"His visit could give impetus to the promotion of the Masalli-Astara highway project, as well as the start of negotiations for additional funding for the road project," the office said.
The ADB will allocate an additional $160-$170 million for the project.
"The final cost of the project, including the amount of an ADB loan, will be adjusted after the completion of the tender procedure for the determination of the contractor for the two sections of the road," the office said.
Azerinshaatservis Construction Company was selected to build the first stretch of 22.15 km and the tender procedure has been completed on the two remaining sections and currently the proposals are under evaluation.
The road will be constructed using a $200-million ADB loan. The government's share is $49 million.
Due to rising costs, the project adviser must make the necessary changes to the cost estimate, which was prepared in 2008.
Additional funding will be provided from the third Multitranche Financing Facility - MFF for road projects in Azerbaijan, approved in the amount of $500 million in August 2007. Earlier, a third MFF loan was considered for upgrading the Ganja-Gazakh highway.
Due to delays in the project implementation of the ADB extended 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.