Azerbaijan, Baku, Dec. 7 / Trend A.Akhundov /
The approval of the second tranche to the sum of $250 million is possible in 2013 as part of the European Bank for Reconstruction and Development (EBRD) transport project in Azerbaijan. This was announced to reporters by the head of the EBRD mission in Azerbaijan, Neal McCain.
"Everything depends on the results of the first tranche. If they are satisfactory we will appeal to the board of directors for approval of the second tranche," McCain said.
According to him, the work within the project is going well and on schedule.
The Azerbaijan government and the EBRD signed a loan agreement to provide $750 million for a major transport project at a total cost of $900 million in early December.
The first tranche of the EBRD loan will be directed towards the reconstruction of the Mingachevir-Bahramtepe road. Reconstruction of the 156 kilometre section of this road in line with modern standards will improve transport links in rural areas where a population of around half a million people reside. It will also give access to the motorway connecting Baku to the Georgian border.
The two remaining tranches will be allocated in equal shares.
The main purpose of the project is to contribute to the reconstruction of key regional highways, corridors or roads adjacent to Georgia and Iran.
The EBRD loan will be part of the project on modernisation of the road infrastructure and the state programme funded by the Azerbaijani government from the budget, as well as the World Bank ($675 million) projects and Asian Development Bank ($500 million).