SIGNING OF CREDIT AGREEMENT ON RECONSTRUCTION OF HIGHWAY BAKU-SAMUR (RUSSIAN BORDER) TO TAKE PLACE
Signing of the loan agreement between the Transport Ministry of Azerbaijan and the European Bank for Reconstruction and Development (EBRD) on funding the project for reconstruction the highway Baku-Samur (the Russian border) will take place on 29 September 2005, the Transport MinistryвЂ™s secretary Namik Hasanov told Trend. According to him, the document will be signed from the Azerbaijani side by the Transport Minister Ziya Mammadov.
Р•BRD will allocate $100 million for funding modernization and rehabilitation of the road section from Sumgayit to Zorat settlement of the main highway Baku- the Russian border. The loan will be granted for 15 years with 3-year preferential period and the LIBOR+1% rate.
The highway Baku-Samur has a total length of about 197 km. EBRD will finance it from 28-th to 89-th kilometer. The funding of the rest section will be performed by Eximbank of Czechia, which allocated the credit in the amount of $180 for the project implementation for the period of 14 years with the 4-year privileged period and the LIBOR+0,6% interest rate. The projectвЂ™s total amount is some $280 million.
The recipient of the EBRD assistance will be the department of road transport services of the AzerbaijanвЂ™s Transport Ministry, which manages and services 18,723 thousand kilometers of roads in the country.