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Azerbaijani Transport Ministry publicizes plans for use of EBRD loan

Business Materials 27 December 2011 17:24 (UTC +04:00)

Azerbaijan, Baku, Dec. 27 /Trend E.Ismayilov/

A thorough reconstruction of the Mingachevir-Bahramtepe road through the first tranche of the European Bank for Reconstruction and Development (EBRD) loan for the development of road infrastructure in Azerbaijan would be impossible, the source in the Ministry of Transport of Azerbaijan told Trend.

The Azerbaijan government and the EBRD signed a loan agreement to provide $750 million for the project in early December.

The loan agreement provides allocation of $250 million under the first tranche for reconstruction of major highways that will provide access to regional transportation corridors. The remaining two tranches will be allocated in equal shares in the amount of $250 million.
The source said $250 million would be enough only for the reconstruction of two-line highway Mingachevir-Bahramtepe.

"Taking into account the extent and condition of the road, these funds will not be enough to complete its reconstruction," the source said.

So, part of the second tranche will be needed to complete this road project.

"The remaining funds, particularly those within the third tranche of the loan, will be used to improve and upgrade the road infrastructure in the regions of the country," the source added.
The first tranche of the EBRD loan will be directed to the reconstruction of the Mingachevir-Bahramtepe road. Reconstruction of the 156-kilometer section of this road in line with modern standards will improve transport links in rural areas, where a population of around half a million people reside, and will provide access to the motorway road connecting Baku to the Georgian border.

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