Azerbaijan, Baku, Nov. 11 / Trend , N.Ismayilova /
The Asian Development Bank (ADB) waits for a request of the Azerbaijani government to continue negotiations on the second tranche to improve water and sanitation services in the country, ADB representative in Azerbaijan Ollie Norojono told Trend.
"Our goal is to approve the second tranche worth $ 300 million by late 2011. We now await the receipt of a formal request from the government, after which there will be held negations and the tranche will be submitted for the approval," he said.
The loan funds primarily will be directed to complete the work within the system to improve water supply and sanitation in Agdash, Goychay and Nakhchivan, and it is planned to expand the project at the expense of the remaining funds.
"The beylegan region was also included in the project," Mr. Norojono said.
The ADB reported that it plans to consider approval of the second tranche worth $ 300 million under the MFF on Dec.9 2011.
To date, 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. The ADB Board of Directors plans to consider approval of the third tranche worth $ 175 million on Dec. 31, 2012.
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.