The Transport Ministry of Azerbaijan plans to launch construction of the Baku-Samur (the Russian border) highway in January 2006, the Minister of Transport of Azerbaijan Ziya Mammadov told Trend.
According to him, the President of the country endorsed the loan agreement, signed between the government of Azerbaijan and the European Bank for Reconstruction and Development (EBRD) for assigning of $100 million on the project for funding the updating and rehabilitation of the road section from Sumgayit till Zarat settlement of the motorway Baku-the border with Russia
The Bank will allocate the loan for 15 years with the 3-year privileged period of the LIBOR+1% rate. The total stretch of the highway is about 197 km. EBRD will fund 60 km section of it. The remaining part of the road will be financed by the Czech Eximbank, which allocated the loan in the amount of $180 million for 14yeras with the 4-year preferential period and the LIBOR+0,6% interest rate. The projectвЂ™s total amount is some $280 million.
The recipient of the EBRD assistance is the Department of Road and Transport Services under the AzerbaijanвЂ™s Ministry of Transport, which manages and operating 18,723 thousand of motor roads in the country. 4-6 regional divisions of the Department will be set up, service level agreement will be made, which will enable to involve the local potential to road works. The control over distribution of such contracts will be performed by the Road Advisory Board.