Japanese JBIC bank declined to participate in Samur-Apsheron canal reconstruction
The Japanese Bank for International Cooperation (JBIC) will not fund the Samur-Apsheron canal complex reconstruction project, the government told Trend. The reason for this is the unsolved problem of the border delimitation issue along the Samur river. Due to existence of such disputable issue between Azerbaijan and Russia JBIC abandoned the project, suggesting the government to propose other projects for consideration instead.
Despite the banks refusal the government is not going to look for another sources of funding, as it decided to implement the remaining repair works on the account of inner resources. As the government noted, external borrowings make up nearly $180 million, Azerbaijan is to invest some $100 million.
The Japanese Nippon Koi company prepared a complete Feasibility Study for the Samur-Apsheron Canal complex reconstruction. The Feasibility Report was prepared by Nippon Koi based on the contract worth of $1 million and it has been concluded within the World Bank project Rehabilitation and development of irrigation and drainage system of Azerbaijan.
The canal consists of many parts and for reconstruction of the entire Samur-Apsheron complex $300 million is needed by preliminary estimates.
The reconstruction of the canal started in 1998. In 2000 the World Bank first loan worth of $42 million was allocated for reconstruction of the head hydraulic facilities. The project is finished this year. The World Bank second loan of $35 million was aimed at improvement of irrigation system operation and control.
The reconstruction of the canal is aimed at solution of the water supply problems in Baku and Sumgayit, as well as irrigation of the northern zone of Azerbaijan. Thus, restoration of the water supply system till Baku will be performed during 4-5 years on the account of the Azerbaijans funds.