Loan agreement on water project of KFW expected to be signed in early May
On Friday the Azerbaijani Cabinet of Ministers plans to send final version of the project on reconstruction of the water networks in Ganja and Shaki to German KFW, the government told Trend.
This week Abid Sharifov, the Vice Primer, achieved an agreement with the German bank on schedule of increase of takings for water, increase of tariffs and financing of Shaki water network.
The schedule will be changed into less busy. KFW also agreed with the conditions by Azerbaijan. Water tariffs will increase slowly from 2007. The Azerbaijani government insisted on increase of tariffs only after improvement of water supply. The tariffs will be reconsidered fully after implementation of the project, provision of the population with due quality and quantity of water. The population pays 100 old manats per cubic meter of water in regions, 320 old manats per cubic meter of water in Baku. KFW proposed to double the tariffs in Ganja and Shaki. The tariff for water in the Imishli region, where the water network was reconstructed
at the expense of the funds by the German bank, comprises 1,000 old manats. Payment is carried out by 100% and the population is provided with water 24 hours a day.
KFW will finance improvement of water network only in Shaki town, while the Shaki water network includes villages.
The sides will set to preparations for interstate procedures after reception of positive reply and draft agreement by the German bank within several days. The loan agreement is expected to be signed in early May.
The first phase, covering 3 or 4 years, is estimated at 54m euros, including, 37m euros to be allocated by KfW, 10m euros - SECO, 7m euros - the Azerbaijani government.