Azerbaijan, Baku, Oct. 3 / Trend I. Khalilova /
The Asian Development Bank (ADB) plans to negotiate about the second tranche of $ 300 million with the Azerbaijani government to improve water and sanitation services in the country in October, the ADB's Baku office told Trend on Monday.
The consultations on this loan with the government were expected to be held in June.
"The talks are expected to be held this month," the office said. "The loan is expected to be approved at the ADB Board of Directors on December 2."
The loan will primarily focus on completing the work within improving water and sanitation systems in Agdash, Goychay and Nakhchivan. It is possible to increase the coverage of regions at the expense of the rest funds of the second tranche. In particular, the ADB's office expects one of three regions - Agjabadi, Beylagan or Balakan to be included in the project. The work in other regions will be funded within MFF other tranches.
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.
Under the loan agreement, the ADB's first tranche loan of $75 million was allocated. The Azerbaijani government is providing $25 million.
The ADB Board of Directors approved MFF in the amount of $ 600 million in September 2009. MFF become the basis for an 8-year collaboration between ADB and the Azerbaijani government, given the phased investment, support by a clear strategy and reform program for water supply and sanitation.
The AICO Consulting Ltd / European Consultans Organization is the consultant of Azersu on water project.