ADB plans to approve second multitranche package to develop road network in Azerbaijan
Azerbaijan, Baku, April 11 / Trend A. Akhundov /
The Asian Development Bank (ADB) plans to approve the second multitranche package (MFF) to develop the road network in Azerbaijan (Second Road Network Development Program), the bank said today.
The program worth $800 million is planned to be approved on September 28, 2012. The details will be considered from June 29 to July 13.
It is planned to finance the construction of a new four lane motorway between Alyat and Masalli within the Southern corridor; and the Ganja to Georgian border road widened to four lanes, East-West corridor and other operations through MFF.
The investment program will contribute to regional cooperation and integration by improving Azerbaijan's segment of CAREC Corridor 2. The southern and east-west highways form part of the Asian highway network and have the potential to become important corridors for transit
traffic between Asia and Europe. Successful implementation of the investment program will improve the connection of Azerbaijan with neighboring countries, increasing regional traffic and trade, ADB said.
The MFF first tranche to the amount of $100 million is expected to be approved on October 9, 2012.
ADB will provide Azerbaijan with technical assistance to the amount of $225,000 within the program. Its allocation will be approved on April 24.
About $500 million was allocated from the ADB multitranche package to construct the roads. The package was approved in August 2007. About $255.4 million have been allocated from these funds.
Azerbaijan is a member of ADB since 1999. The ADB's active credit portfolio reaches $680 million. The ADB has allocated grants amounted to $13.122 million to the Azerbaijan government and local companies during the period of cooperation.
The 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.
Japan and the US (31.2 per cent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent) are the ADB leading shareholders.