ADB to allocate another $150 million for highway construction in Azerbaijan
Baku, Azerbaijan, Feb.5
By Abbas Akhundov - Trend:
The Asian Development Bank (ADB) is to issue a second loan to Azerbaijan in 2014 as part of a new multi-tranche financing (MFF) for road construction in the country (Second Road Network Development Investment Programme), according to the business plan for the bank's operations in Azerbaijan for 2014-2016, published on the bank's website on Feb.4.
To this end, the bank intends to issue some $150 million. However, previously it planned to allocate $120 million, according to the document. The total cost of the new road project will be $200 million, some $50 million of which falls to Azerbaijan.
The second multi-tranche package for the construction of roads was approved in November 2012 to the sum of $500 million, as well as the first MFF. The programme envisages the construction of the Masalli-Shorsulu highway to a length of 63 kilometres, consisting of two parts: Masalli-Jalilabad (32.2 kilometres) and Jalilabad-Shorsulu (over 30 kilometres). The cost of the project is $625 million, $125 million of which will be provided by the country's government.
Within the first tranche, the ADB allocated $250 million to build a four-lane Masalli-Jalilabad road. The total cost of the project amounted to $312 million, of which $62 million fell to the Azerbaijani government's share in the project. The loan agreement was signed in April 2013.
The ADB plans to issue a third and last tranche worth $100 million in 2016. The total cost of the project will be equal to $133 million of which $33 million will be financed by the government, the document said.
ADB was founded in 1966 and has 67 members. The bank's headquarters is located in Manila, capital of the Philippines. Azerbaijan joined the ADB on December 22, 1999 and the country's participation share in the bank's capital is 0.5 percent.
ADB's leading shareholders are Japan and the United States (31.2 percent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent).
Translated by L.Z.
Edited by S.M.