Credit agreement for roads reconstruction to sign this week
By the end of this week, an agreement is signed between Azeri Ministry of Transport and Asian Development Bank (ADB) for the design of reconstruction of last two sections of highway Yevlakh-Ganja and Gazah-Georgian border, governmental officials told Trend. Azeri Transport Minister Ziya Mamedov, is already authorized to sign this agreement.
The government is receiving two credos from ADB under the project, one for roads reconstruction and other for border facilities upgrade. First credit in amount of $49mln is issued under usual terms (24 years, 4-year preferential period and rate libor+0.08% annual interest), and the second in amount of $3mln from Asian Development Fund with preferential period of 8 years and annual rate 1% during preferential period and 1.5% for the remaining time.
ADBs credit makes 55.8% ($52mln) in the total project cost of $93.2mln. The rest of funds are provided by Islamic Development Bank ($10.4mln), Saudi Developemtn Fund ($11mln) and Azeri Government ($19.8mln). The roads reconstruction is performed by Motor Transport Department, and border facilities upgrade by State Customs Committee. The project is scheduled to complete in 2010.