Talks with EBRD on AzGRES reconstruction completed successfully

Business Materials 15 May 2006 14:52 (UTC +04:00)

Azeri government requested the European bank for Reconstruction and Development (EBRD) to speed up signing credit agreement for reconstruction of AzGRES in town of Mingachevir, reportedly said Marlen Askerov, vice-president of Azenerji JSC. Such a request, he said, is necessitated by desired commence of construction operations or at least leading a tender procedure this year.

Talks with the bank came successful, it refused from initial terms of operations financing and requirements for increase of rates for power supply.

In short, the sides are launching conversations on credit agreement itself. Cot t estimate of reconstruction for 7 blocks is $150mln, from which $115mln are to be issued by EBRD. The credit is issued under EBRDs standard terms 15 years at a rate libor+1%.