ADB to approve investment program on large energy project in Azerbaijan
Baku, Azerbaijan, Jan. 13
By Maksim Tsurkov - Trend:
The Asian Development Bank (ADB) will approve an investment program for the electric power distribution network development project in Azerbaijan in February 2016, the ADB said.
An exploratory meeting was held December 11, 2015. The project governance issue was considered there. An ADB mission was on a visit to Azerbaijan from August 25 to September 4, 2015.
The program is expected to be approved on February 29, 2016.
Azerbaijan and ADB signed a memorandum of understanding on an investment program, stipulating the reconstruction and modernization of Azerbaijan's energy system in May 2015.
According to the investment program project, the ADB will allocate three tranches of $750 million ($250 million each trance), and the remaining $250 million will be allocated by the Azerbaijani government. These funds will be used within five years.
The allocated funds are planned to be used to upgrade the electricity distribution network, substations, improvement of services rendered to customers, replacement of existing counters with the digital ones, and the strengthening of human resource capacity of the Azerishig.
ADB was founded in 1966 and has 67 members. The bank's headquarters is located in Manila, the capital of the Philippines. Azerbaijan became ADB member on December 22, 1999. The country's 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) and so on.