Second tranche on EBRD large road project postponed in Azerbaijan
Baku, Azerbaijan, March 7
By Emin Aliyev - Trend:
The European Bank for Reconstruction and Development (EBRD) plans to provide Azerbaijan with a second tranche to implement a large road project in 18 months to two years, head of the EBRD office in Baku, Neal McCain told Trend on March 5.
"Azeryolservis must make some preparatory work to enable the EBRD to deliver the next tranche," he said. "I do not think that the funds will be allocated earlier the period mentioned."
Previously it was assumed that the second tranche of the loan would be allocated by late 2014.
The Azerbaijan government and EBRD signed a loan agreement to provide $750 million for a major transport project at a total cost of $900 million in December 2011.
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 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 towards the reconstruction of key regional highways, corridors or roads adjacent to Georgia and Iran.
The EBRD loan will be part of a project to modernise 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).
Translated by NH
Edited by SM