Azerbaijan, Baku, May 8 /Trend A.Hasanov/
A transport delegation from the Asian Development Bank (ADB) will visit Baku on May 8 in order to monitor the construction project of the Masalli-Astara road, the Baku Office of ADB told Trend.
"Potential for new funding in this sector will be discussed during the visit," a bank spokesperson noted.
Multitranche Financing Facility (MFF) allocated $500 million for the road project, part of the Road Network Development Programme. The loan was approved in August 2007 and MFF allocated $400 million for the construction of the Masalli - Astara road.
ADB extended the term of the first loan ($200 million) for the reconstruction of the highway Masalli-Astara to December 31, 2013 due to delays in the implementation of the project.
At present the construction of the first section (A) of the road, which is being carried out by the Azerinsaatservis Construction Company is underway and it is planned to announce a new tender to determine contractors on the other two sites (B and C).
The process of land acquisition for the construction of a new four-lane road has been delayed due to the fact that a number of landowners are abroad.
In any case, changes to the project will not require the attraction of additional funds because the loan worth $200 million approved recently by ADB already includes incidental expenses.
Azerbaijan has been a member of ADB since 1999. The bank's active credit portfolio reaches $680 million. ADB has allocated grants amounting to $13.122 million to the Azerbaijan government and local companies 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 per cent.
Japan and the US own 31.2 per cent of the total share capital, India and China 12.8 per cent, Australia, South Korea and Canada, 16 per cent are the ADB's leading shareholders