ADB extends terms of road loans for Azerbaijan
Azerbaijan, Baku, Dec. 12 /Trend N.Ismayilova/
The Asian Development Bank (ADB) approved an appeal from the government to prolong the period of the loan under the multitranche package (Multitranche Financing Facility - MFF) for road projects in Azerbaijan (Road Network Development Program) to three years, the head of ADB representation Ollie Noroyono told Trend.
Agreement on the framework credit between Azerbaijan and ADB on multitranche financing for road projects in Azerbaijan, signed on August 8, 2007.
"Due to delay in granting tranches to Azerbaijan under the program and the availability of the unused portion of credit we have discussed and approved the appeal to prolong the period of the loan," Noroyono said.
Noroyono noted that the latest date by which payment can be made for any tranche of the program, is now set for December 2017. The last tranche of multitranche financing is expected to be provided no later than on December 2013.
From $500 million of ADB multitranche package for the construction of roads, approved in August 2007, $255.4 million has already been allocated.
The first tranche of $200 million has been allocated for the construction of the road Masalli-Astara, the second (55.4 million) for the reconstruction of Ganja circle road. The bank plans to allocate an additional $200 million (third tranche) to the end of 2011 to continue the construction of the Masalli-Astara four-speed railway. Azerinsaatservis construction company is chosen to build the first section of the road and the tender procedure is still ongoing on the other two sites (B and C).
Allocating the fourth tranche of $44 million will be discussed in 2012. The road section, which will be financed out of credit, is yet to be determined.
Azerbaijan is a member of ADB since 1999. Active credit portfolio of ADB reaches $680 million. The ADB has allocated grants amounted to $13.122 million to the Azerbaijan government and local businesses during the period of cooperation.
ADB was established in 1966 and has 67 members. The headquarters of the bank is located in the capital of the Philippines, Manila. Azerbaijan became a member of the Asian Development Bank on December 22, 1999. The country's participation share in the bank's capital is 0.5 percent.