KWF suggests to increase Azerbaijan` s share in water project
German Reconstruction Bank (KFW) suggested government to increase its share in the water infrastructure reconstruction project in Ganja and Sheki till 8, 250m EURO, the government told Trend. Project` s manager, Theodore Dickmann is currently in Baku to finish the credit agreement considering both Azerbaijani side` s and bank` s proposals.
Decision to increase governmental share to 1, 250m EURO is aimed to reduce these expenditures from investments. Previously, ministry of finances planned to allocate from the governmental share in the project. Expenditures of Ganja and Sheki water infrastructure will be later covered by the payments for water services from population. Thus, bank is suggesting to double the water tariffs, however, this should be done step by step accompanied by the improvement in water quality. According to the schedule, tariffs will be growing on 15- 30 % each year starting from 2007
. now Ganja and Sheki population is paying 100 AZM per 1 cm2 of water.
Bank` s expert will stay in the country till the May 5. the above mentioned agreement is expected to be signed in May, though, due to some procrastinations it may be delayed.
The first phase of the project will cost 54m EURO; 37m of them will be provided by KFW, 10m more will come in the form of grant from the Swedish Economic Connections Organization (SECO), 7m EURO will be provided by the Azerbaijani government unless it will be increased to 8, 250m EURO.