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European Bank ready to continue funding of road projects in Azerbaijan

Business Materials 18 January 2006 13:38 (UTC +04:00)

The European Bank for Reconstruction and Development (EBRD) is ready to continue allocating of funds for the road projects implementation in Azerbaijan, including construction of the Baku ring motorway. To this end the government is to present relevant projects for the EBRD consideration, after which the decision will be made, the EBRD representative office head in Azerbaijan Reymond Conway said.

EBRD is currently funding two road transport projects in Azerbaijan. One of them is reconstruction of the part of the highway Baku-Samur (the Russian border). The EBRD loans amount is $100 million. They are allocated under standard conditions and under the state guarantee. These funds will be spent for the road reconstruction from 28 km to 89 km. The remaining part of the road will be rehabilitated by the Czech В"Eximbank with its loan of $180 million. Its loan is syndicated. From the total sum $102 million is allocated by Eximbank and $78 million by the French bank BNP Paribas. The loan is given for 15 years with the privileged period of 4 years and the Libor+0,6% interest rate.

The second credit is for rehabilitation of the Hadji-Kabul Kyurdamir highway. The loans amount is $41 million. The projects implementation period is 2 years.

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