Transport ministry to sign 2 credit agreements

Business Materials 27 April 2006 14:23 (UTC +04:00)

Government is preparing to pass authority over to the transport ministry in signing agreement with the World Bank and Asian Development Bank in order to get credits for highway reconstruction projects. Credit agreements will be signed with both banks, the vice transport minister, Musa Panaxov told Trend. Projects are now in evaluation stage and their price will be known a little later.

ADB and Azerbaijani government have already finished talks on credit agreement on Evlax-Ganja-Gazax- Georgian border reconstruction project. ADB will provide two credits for this project- one for reconstruction another to finance the border service components. $48m (for 24 year with 4 year benefit period and libor rate +0, 08% annual) has been provided for the first component, and $3m from the Asian Development Fund for 32 year with 8 year benefits, 1% rate and 1,5% for remaining period.

ADB credit will cover 55, 8% from the total cost of project- $93, 2m. The rest will be provided by the Islamic Development Bank ($10, 4m), Saudi Development Fund ($11m) and Azerbaijani government ($19, 8m). The road construction department will be responsible for implementation of the project. It has to be over by 2010.

WB will finance the part of the road from Alyat to Shorsulu, it will provide $200m to finance the given project, consisting of 2 parts; Alyat- Shorsulu and Baku-Shemaxa-Mugan.

Whereas, the road construction will be credited by the International Development and Reconstruction bank for 20 year term with the beneficial period of 4 years and libor percent rate +0,5%