Azerbaijan, Baku, Aug. 25 / Trend I. Khalilova /
The tender will be announced after the plan for land acquisition is prepared to construct the last section (section C) of the Masalli-Astara highway, financed through the third tranche of the multitranche program of the Asian Development Bank (ADB) for the road construction, ADB office in Baku told Trend on Saturday.
"Earlier, it was planned to announce a common tender for the construction of B and C sections," a source said. "But taking into account that the process of land acquisition has been almost completed in the B section (from 22.15 to 41.50-km road stretch) almost completed, a tender has been recently announced to determine a contractor without waiting a plan for the second section (section C)."
ADB has allocated a loan worth $ 200 million to construct two these sections. The bank has allocated a loan for the same amount to construct the first road section (A). Azerinshaatservis construction company was chosen as a contractor.
This road project is financed through Multitranche Financing Facility (MFF) for Road Network Development Programme worth $500 million. The loan was approved in August 2007. About $400 million were allocated through MFF for the construction of the Masalli - Astara road.
ADB extended the term of using the first loan ($ 200 million) by Azerbaijan within the reconstruction project of a section of the Masalli-Astara highway till December 31, 2013 due to delays in the project implementation. The loans have remained virtually unused within 2.5 years since January 2008 when the loan agreement entered into force. The term of their use expired on June 30, 2010.
The process of land acquisition along the Masalli-Astara highway is being delayed as a number of land owners operating on an equal footing are beyond the country. In any case, the changes in the project will not require additional funds, as the second loan to the amount of $ 200 million approved by the ADB in late 2011 already includes contingencies.
Azerbaijan is a member of ADB since 1999. The ADB's active credit portfolio reaches $680 million. The ADB has allocated grants amounted 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 percent.
Japan and the US (31.2 per cent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent) are the ADB leading shareholders.