Azerbaijan, Baku, July 10 /Trend A.Hasanov, A.Taghiyeva/
The preparation of a feasibility study (FS) project to expand and reconstruct water supply and sewerage system in the city of Khirdalan (10 km from Baku) and the adjacent townships is completed, JSC Azersu (national water operator) told Trend.
According to the information, the initial project cost amounts to $140 million.
Saudi Fund for Arab Economic Development and JSC Azersu reached an agreement on the financing of this project by the fund, the Embassy of Saudi Arabia in Azerbaijan told Trend on Tuesday. Saudi Fund will provide a loan of 131.25 million Saudi riyals ($35 million).
Signing the loan agreement on the project is expected in the near future, the Embassy said, without naming a specific date.
During the visit, the delegation of the Saudi Fund in Azerbaijan last week discussed the progress of other projects funded by the Foundation, the embassy said.
Under the terms of the Saudi Fund, usually this financial institution finances up to 50 percent of the project.
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.