Azeri government sends KFW credit agreement for water project

Business Materials 25 May 2006 15:26 (UTC +04:00)

Azeri government dispatched an agreement for reconstruction of water supply networks in Ganja and Sheki to KFW or approval, Trend reports quoting Natik Abdullayev, head of the banks Baku office. The document will be signed upon examination by both the parties.

Governmental officials said the banks lawyers just have to examine the tax section and further offers of Azeri party.

The bank and government agreed on raising water fee as this issue was ruled out of the agreement. Tariffs will be raised at the governments discretion in order to repay operation expenses.

the first phase of the project to last 3.5-4 years is planned to amount E 54mln, from which E 37mln (E 25.85mln as a new credit and remain of similar operations in Imishli) issues KfW, E 10mln are taken as grant from Swiss State Secretariat for Economic Relations (SECO), and E7mln is Azeri governments share unless raised to E8.25mln.