Azerbaijan, Baku, Dec.15 / Trend E. Ismayilov /
Azerbaijani government and the European Bank for Reconstruction and Development (EBRD) signed a loan agreement to allocate $750 million to implement major transport project in Baku on Thursday, Azerbaijani Transport Ministry said on Thursday.
The loan agreement was signed by Azerbaijani Transport Minister Ziya Mammadov, Finance Minister Samir Sharifov and Olivier Descamps, EBRD's Managing Director for Turkey, Eastern Europe, Caucasus and Central Asia.
"EBRD funding for the regional road improvements is essential to reaching out to the more remote areas of the country to help promote more diverse and more sustainable economic development," Descamps said during signing the loan agreement.
This latest EBRD loan for the roads system in the country provides $250 million to the Azerbaijani authorities for the reconstruction of key regional roads feeding into the main corridor highways. The remaining two tranches will be allocated in equal parts -$250 million each.
The new loan will be used specifically to finance the reconstruction of the Mingachevir - Bahramtapa road. The modernisation of this 156 km stretch will improve transport links for some half a million people living in this rural area and provide access to the main international highway that runs between the Azerbaijani capital of Baku and the Georgian border.