Azerbaijan, Baku, June 27 / Trend, E.Ismayilov /
The signing of a loan agreement with the Asian Development Bank (ADB) within the third tranche of Multitranche Financing Facility (MFF) for road projects in the Azerbaijan Road Network Development Programme is expected in July, a source in the Azerbaijani Transport Ministry told Trend on Wednesday.
The third tranche was approved late last year to the sum of $200 million. These funds will be used for continuing the construction of the four lane Masalli-Astara highway.
"All issues between the parties have been coordinated, so the agreement may be signed next month," the source said.
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.
The first tranche of $200 million has been allocated to construct the Masalli-Astara road, 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 a tender to determine contractors on the other two sites (B and C) still continues. "Issue of selection of contractor for the construction of the remaining section still remains open," the source said.
Azerbaijan has been a member of ADB since 1999. The ADB's active credit portfolio reaches $680 million. The bank has allocated grants amounting to $13.122 million to the Azerbaijan government and local companies during the period of cooperation.