Azerbaijan and ADB to sign loan agreement by end of first quarter
Baku, Azerbaijan, March 3
By Ilaha Khalilova - Trend:
The Asian Development Bank (ADB) expects an agreement on delivering a loan worth $150 million to be signed by the end of the first quarter for the reconstruction of the water supply and sewerage system in two cities of Azerbaijan, Agjabadi and Nakhchivan, the ADB office in Baku told Trend on March 1.
The bank approved the allocation of funds as part of the third tranche of the multi-tranche financing of the investment programme for a water and sewerage system in Azerbaijan worth $600 million in December 2013.
It is planned to conduct operations to reconstruct the water supply and sewerage system in Agjabadi and in Nakhchivan not covered by previous projects through the third tranche worth $ 150 million.
A multi-tranche package was approved in September 2009. The first loan from the MFF was allocated to the sum of $75 million for the reconstruction of the water supply and sewerage system in Goychay and Nakhchivan, while the second tranche worth $300 million was for the completion of operations on system reconstruction in Agdash, Beylagan, Goychay and Nakhchivan.
Some $28 million was allocated from the first tranche designed for the two regions to conduct operations in Nakhchivan.
The Gemi Qaya Company was chosen as the construction operation contractor in Nakhchivan.
The State Committee for Land Reclamation and Water Management of the Nakhchivan Autonomous Republic is an executor of the project in the region.
Previously operations in this region were conducted through the first loan worth $30 million. It was allocated by ADB in 2004 to restore the water supply system in Agdash, Goychay and Nakhchivan. Some $10 million was allocated from these funds for Nakhchivan.
It is planned to construct a water treatment plant in this region for the first time. The water will be purified. At least $10 million will be required for plant construction. Funds from the ADB's third tranche will be spent completing the remaining operations in Nakhchivan.
Agjabadi town is involved in the ADB project on the reconstruction of water supply and sewerage system for the first time. Project documentation has already been already prepared for the construction work.
The multi-tranche financing was the basis of an eight-year cooperation between ADB and the Azerbaijani government, given the phased investments and supporting the strategy and programme of reforms in the field of water and sewerage system.
ADB was founded in 1966 and has 67 members. The bank's headquarters is located in Manila, the capital of Philippines. Azerbaijan became an ADB member on December 22, 1999. The country's participation share in the bank's capital is 0.5 percent.
The ADB active credit portfolio all over the country reached $ 1.2 billion.
Leading ADB shareholders are Japan and the U.S. (31.2 percent of the total share capital), Indian and China (12.8 percent), Australia, South Korea and Canada (16 percent).
Translated by NH
Edited by SM