KfW prepares to assess water project in Azerbaijan to provide additional funding

Business Materials 10 August 2011 19:09 (UTC +04:00)

Azerbaijan, Baku, Aug. 10 /Trend, I.Khalilova/

The German Development Bank KfW plans to conduct the assessment of the project to restore water and sewerage systems in the cities of Ganja and Sheki of Azerbaijan in September in order to provide additional funding, the head of the KfW Baku office Natik Abdullayev Trend on Wednesday.

"The Bank is ready to provide additional 83 million euros to continue activities for the full restoration of water and sewerage systems in these two cities: 23 million euros of them were approved by the German government in 2009, 40 million euros in 2010 and 20 million euros in 2011," said Abdullayev.

The first phase of the project envisages improving the quality and reliability of water supply and sewerage system in the cities of Ganja and Sheki with a budget of 55 million euros. KfW provided loan worth 37 million euros, and Seco - 10 million euros in the form of grant to realize the project in accordance with the agreements signed in Bern in October 2006. The share of the Azerbaijani government in the project is 8 million euros.

The first phase of the project includes measures to provide water to Sheki at 100 percent and Ganja - 50 percent. Further development of water supply system of Ganja is envisaged under the second phase.

Abdullayev said that to finance the second phase, the Bank will allocate 23 million euros, which is expected after the September assessment of the project, and to provide 40 million euros, the assessment period has been defined for December 2011.

"The main purpose of the German bank is to connect consumers to the water network at 100 percent, said Abdullayev. - However, due to delays in the definition of a contractor to start construction work in Sheki, the completion of the project delays by 2014."

He said the construction work has already begun in Ganja, which is conducted by the Turkish Hasalsan Company, and to identify a contractor for Sheki, the tender will be announced in September.

Consulting services and a partial restoration of infrastructure in Sheki, in particular the purchase of equipment, are planned to be implemented owing to Seco's funds.