Azerbaijan to complete conversations on Azeri hydroelectric power plant in April
Conversations between EBRD and Azeri government on restoration of Azerbaijan hydroelectric power plant in Mingechavir are planned to complete by the end of April, Trend reports quoting Marlen Askerov, vice-president of JSC Azenerji. He reportedly said the questions of issuing credit piece-by-piece, increase of power tariffs and credit insurance are not yet coordinated with the ban officials.
The Bank insists on tariffs rising, which is not Azenerjis responsibility, Askerov said, adding the company considers piece-by-piece credit issuing inexpedient due to postponement of power blocks recovery and subsequent rise of price of materials and equipment. In such event the company would have to revise its agreements with contractors. В"We intend to purchase spare parts for all seven blocks altogether to avoid the further rise of project costВ", - vice-president said. Credit insurance requires significant expenses and therefore this issue is also in the center of attention.
Governmental officials told Trend that they already had achieved an agreement with EBRD on tariffs for power supply. The Government claimed to revise tariffs on annual basis.
Approximate cost of reconstruction of blocks 1 to 8, except for fifth block, is $150mln, $115 of which will be issued by EBRD. The fifth block was reconstructed at governments own costs, some $15mln.