Azerbaijan, German bank agree upon project on reconstruction of water network
The Azerbaijani government and the German Bank for Reconstruction (KFW) have agreed upon the project on reconstruction of water networks in Ganja and Shaki, Natik Abdullayev, the head of Baku Office of KfW told Trend.
Theodore Dickman, a manager of the project, visited Baku early in May. The credit agreement can be signed by the end of May or beginning of June.
The bank agreed upon simplifying the term of the credit, the schedule for increase of tariffs for water and co-efficiency of collection of charges for water consumption. Increase of tariffs will be carried out at the instruction of the government to cover the expenses for water networks.
The issue on increase of governments participation share in the project by 1.25m euro from 8.25m remains open. The fund will be allotted in the period of implementation of the phase within 3.5-4 years.
The Ministry of Finances told Trend additional funds are needed for rehabilitation and maintenance of water pipes while serving to population in Ganja and Shaki regions not including the project. The project includes improvement of water supply only for 53% of these regions.