ADB to hold talks with Azerbaijan on third tranche on water project

Business Materials 3 February 2012 22:12 (UTC +04:00)

Azerbaijan, Baku, Feb.3 /Trend N.Ismayilova/

The ADB plans to approve the third tranche amounted to $175 million the third tranche of the multitranche package to improve water and sewerage services in Azerbaijan till the end of 2012, Baku representation of ADB told Trend on Friday.

"The ADB mission will visit Azerbaijan in March in order to conduct negotiations with the government on the third tranche to the water sector of the country. The third tranch is expected to be provided in the second or third quarters of 2012" the ADB said.

It is planned to conduct the operations to improve water and sewerage systems in Agjabedi and Beylagan within the third tranche, the bank said. Part of these funds can be directed to operation in Nakhchivan if they fail to be implemented in the frame of second tranche.

The funds within the second tranche approved to the amount of $ 300 million in early 2012 will be spent to complete the operations on water and sewerage improvement in Agdash, Goychay, Nakhchivan and Beylagan.

At present, ADB has financed two water supply and sanitation improvement projects in Azerbaijan. The first, a $30 million loan assigned in 2004, saw the rehabilitation of the water supply system in Gekchay and Nakhchivan, under a project valued at a total of $39.9 million.

That loan period expired on June 30, 2011.

As the cost of the project, approved for five years, increased and in order to give full coverage of works in the above regions, ADB assigned $75 million under the MFF as the first tranche, whereas the Government of Azerbaijan assigned $25 million.

The MFF was approved to the sum of $600 million by the ADB Executive Board in September 2009.