ADB postpones approval of third tranche for road project in Azerbaijan

Business Materials 26 October 2011 20:54 (UTC +04:00)

Azerbaijan, Baku, Oct. 26 /Trend, N.Ismayilova/

The date of ADB Board of Directors' approval of the third tranche under the Multitranche Financing Facility (MFF) for road projects in Azerbaijan (Road Network Development Program) has been postponed to Oct. 31, 2011, according to a report of Asian Development Bank on Wednesday.

The third tranche worth $200 million for the construction of sectors B and C of four-lane highway in Masalli-Astara had been planned to be scheduled in September.

The question of approving the fourth tranche worth $44 million will be considered at the Board of Directors meeting on Nov. 10, 2012. The section of road to be financed has not yet been determined.

The ADB has allocated roughly $255.4 million from its multitranche package for road construction worth $500 million, approved in August 2007.

The first tranche worth $200 million was allocated for the construction of the Masalli-Astara road, and the second tranche ($55.4 million) was allocated for the reconstruction of Ganja ring road. The bank intends to allocate additional $160-$170 million (third tranche) for Masalli-Astara.

Azerbaijan has been a member of the ADB since 1999. In early 2010, the credit portfolio across the country on 14 projects amounted to $660.4 million. During the period of cooperation, the ADB has also provided grants worth $13.122 million to the Azerbaijani government and local companies.

The 67-member ADB was established in 1966. Its headquarters are in Manila. Azerbaijan joined the ADB in December 1999 and its share in the bank's capital is 0.5 percent.

The ADB's leading shareholders Japan and the United States (31.2 percent), India and China (12.8 percent), Australia, and South Korea and Canada (16 percent).