Loan agreement for road project in Azerbaijan to signed in autumn

Business Materials 17 May 2012 19:35 (UTC +04:00)

Azerbaijan, Baku, May 17 /Trend I.Isabalayeva/

Signing of a loan agreement under the third tranche of the multitranche package (Multitranche Financing Facility - MFF) for road projects in Azerbaijan (Road Network Development Program) will be held in September, a source in the Ministry of Transport of Azerbaijan told Trend.

The third tranche was approved to the amount of $200 million. These funds will be used to continue the construction of a four-speed rail line Masalli-Astara.

The source said the ADB has already provided a loan agreement to the government of the country and now it is going through the internal procedures.

"Currently the document is under review and in will be signed by September," the source said.

From $500 million of ADB multitranche package for the construction of roads, approved in August 2007, $255.4 million has already been allocated.

The first tranche of $200 million has been allocated to construct the road Masalli-Astara, the second (55.4 million) to reconstruct the Ganja circle road.

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).

ADB was established in 1966, its membership includes 67 countries. The Bank's headquarters is located in Manila.

Azerbaijan became a member of the Asian Development Bank on December 22, 1999, the proportion of the country's participation in the bank's capital is 0.5 percent.