Saudi Fund for Development to finance second water project in Azerbaijan
Azerbaijan, Baku, July 4 / Trend A.Taghiyeva, I.Khalilova /
For a discussion of the project to expand and reconstruct water supply and sewerage system in the city of Khirdalan (10 km from Baku) and the adjacent townships, a visit to Baku of a mission of the Saudi Fund for Arab Economic Development begins from July 5, the Azerbaijani government told Trend on Wednesday.
"The total project cost, according to preliminary estimates, is more than $100 million, which will be specified after the completion by Azersu (water operator) of feasibility study of the project," the source said.
The Saudi Fund approved allocation of a loan worth 131.25 million Saudi riyals ($ 35 million) to finance the project, the Embassy of Saudi Arabia in Azerbaijan told Trend on Wednesday.
Under the terms of the Saudi Fund, usually this financial institution finances up to 50 percent of the project.
Although the feasibility study was prepared already last year, since it covers only the city of Khirdalan, it was decided to adapt it taking into account the surrounding townships.
This is the second loan from the Saudi Fund for Development provided to Azerbaijan to improve water supply and sewerage system. In 2009, the Fund allocated 93.75 million Saudi riyals (about $ 25 million) to finance the project of construction and reconstruction of water supply and sewerage system of townships and villages around Baku.
Credit resources are allocated for 20 years with a grace period of five years and at a rate of two percent per annum.
Earlier, the Saudi Fund funded three projects in Azerbaijan. Some $9.5 million were allocated for the construction of five schools in Baku, $ 18 million - for the reconstruction of the section of Samur-Absheron canal - Velvelichai-Takhtakorpu, $ 13 million - Yevlakh-Ganja highway.