WB set to discussions of road project with Azerbaijan’s government

Business Materials 28 November 2005 16:40 (UTC +04:00)

The World Bank (WB) transport mission set today to discussions of the Alayt вЂ" Astara highway (from Baku till the border with Iran) rehabilitation project at the Transport Ministry of Azerbaijan, the World Bank Baku office told Trend. The mission’s head, the highway projects curator Olivier Le Berr will arrive in Baku on 30 November.

The government of Azerbaijan plans to draw credit resources in the amount of up to $390 million for this road project implementation. Funding will be performed from several sources. From the total amount of loans of about $230-240 million the World Bank plans to allocate some $110-120 million to the Azerbaijani side. The Azerbaijan’s government plans to sign the loan agreement with WB in the shortest time.

The WB loan will be involved for 20 years with the five year privileged period and the interest rate of LIBOR +0,25%. The Asian Bank of Development proposes its loan for 25 years with the delay of payment for 5 years and the LIBOR +0,34% rate.

The project’s Feasibility Study has been prepared by the Iranian Basilo company. At the result of the works done the highway’s length reduced for 45 km, till 268 km. The experts of the Basilo company are currently continuing preparation of the highway’s engineering project.