Transport Ministry, ADB determine date of signing of a credit agreement on west motorway project
The Azerbaijani Transport Ministry and Asian Development Bank (ADB) will sign a credit agreement connected with the project Reconstruction of two final parts of the west-east highway between Yevlakh, Ganja and Gazakh border of Georgia on 1 June 2006, ADB Baku office informed Trend. Ziya Mammadov, the Azerbaijani transport Minister is authorized in signing of the credit.
The government will receive two credits for this project for the reconstruction of roads and for financing the boundary service components. ADB has disbursed $49m credit to the first one from its common credit resources (for 24 years, with 4-year grace period and annual interest libor+0,08%), and to the second one - $3m lax credit from Asian Development Fund (for 32 years, with 8-year grace period, and annual interest 1% within grace period, but 1,5% after grace period).
The credit of ADB forms 55.8% ($52m) of the total cost of the project that amounts to $93.2m. The remaining part of the finance will be realized by the Islamic Bank for Development ($10.4m), Saudi Development Fund ($11m), and the Azerbaijani government ($19.8m).