Transport Ministry revealed rise in cost of highway reconstruction

Business Materials 14 June 2006 15:18 (UTC +04:00)

Due to rise in cost of reconstruction of highway Ujar-Yevlakh, Azeri government is going to attract additional sources of financing. Trend reports quoting Mirgasim Abbasov, director of investment policy with financial-credit department of Transport Ministry, that based on the analysis performed the commission established by the ministry revealed the project rise in cost to $50mln.

The commission already submitted its proposals to the Cabinet of Ministers in order to define the project financing amount.

Abbasov said the rise in cost is the result of expensive construction materials in the market and other costs not covered by TEO due to its compilation yet in 1999.

Official also said the government has assigned BNP Paribas to finance highway extension project. The bank originally offered a $120mln credit, and then raised it to $200mln.

The government is also examining the second proposal, submitted from Woori Bank of Korea. The bank has got various financial offers starting in $150mln and so.