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Eurobank waits for increase of tariffs for some services by gov't

Business Materials 6 April 2006 16:04 (UTC +04:00)

The Azerbaijani government undertook liabilities before the World Bank on doubling of tariffs for some services till 2010. The European Bank of Reconstruction and Development would like to receive similar confirmation, as it is related to conditions of crediting for reconstruction of AzSDPS, Trend reports referring to Raymond Konvey, the EBRD representative in Azerbaijan. According to Konvey, the bank is currently holding negotiations with the Azerbaijani government.

EBRD proposed to inject some changes to the conditions of granting of loan to Azerenerji JSC to reconstruct 8 energy units of the Azerbaijan Thermoelectric Power Station (TPS) in Mingachevir. It concerned increase of tariffs for energy in the country.

Nevertheless, the rest conditions urging the Company to refuse from the loan are valid. In particular, it concerns stage-by-stage allocation of funds that can have impact on terms of the implementation of the project. Azerenerji is not satisfied with such conditions of insurance of loans. The implementation of the project will presumably take around $150m.

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