The Azerbaijani government and German bank for reconstruction signed a grant agreement on Monday. The document was undersigned by the Azerbaijani Minister for Economic Development, Farhad Aliyev, and the Deputy head of KfWвЂ™s Department for Water and Infrastructure in East Europe, Kurd Fon
Aliyev noted that grant was allocated for the project on reconstruction of water supply systems of Ganja and Shaki cities. The 1.5m euro grant will be allotted in three equal installments.
An agreement on approval of the first part of the grant (511,000 euros) was signed on Monday. The funds were directed at the development of a feasibility study of the project. The total budget of the project is 54m euro, of which 15m euro will be approved for 35 as a privileged loan, 7m will be covered by the Azerbaijani government and rest funds by SECO. The German government will also allocate 5m for financing the deposit insurance fund.
Thus far Germany has rendered 134.6m euro financial aid and 26m euro in technical assistance. The project expires in autumn 2005.