The design cost of the road to be built bypassing Baku is currently estimated at $58 million, the Azerbaijan Transport Minister Ziya Mammadov has said today, Trend reports. However, the Azerbaijani side has excluded some works which are supposed to be done in future. Thus, around $49,5 - $50 million are needed for the project implementation, which is about to start in summer, the Minister noted.
The project cost was specified following repeated technical study of the road by its designer, the Jordan Arab Consult. The projects rise in price is explained by the necessity to carry on communications and construction of the road section of 5 km and some other infrastructure which had not been taken into account in the projects previous Feasibility Study. Particularly, building of the new flyover is planned which will connect the road with the new bus terminal complex. As the Minister noted, during the projects Feasibility Study developing in mid-90s some errors were made. Besides, prices for building materials and services have risen 44%-45%.
The project was supposed to be implemented on the means of the Kuwait Development Fund which allocated a loan of $14,9 million, the Arabian Abu-Dhabi Development Fund - $10 million and the government of Azerbaijan - $3,5 million. The loans from the Arabian lending institutions are allocated for 20 years with the 4-year privileged period at the 2,5% annual rate. Due to the rising in price the deficient part may be given by the Azerbaijan government, the Minister noted.