Azeri Ministry of Transport suggests reducing number of way strips on Baku-bypassing highway in order to decrease the project cost, Trend reports quoting Mirgasim Abbasov, head of investment policy with financial-credit department, Ministry of Transport. Due to cancellation of some operations, the project cost will amount below $50mln against todays $58mln.
in this respect, it will be necessary to revise tender terms. The results of the tender are not satisfying eth government due to high prices the bidders stated. The winner suggests performing operations at $83mln and third-place winner at over $100mln.
The project was supposed to be at the account of Kuwait Development Fund, which
issued a $14.9mln credit, as well as Abu Dhabi Arab Development Fund with $10mln and Azeri Govt with $3.5mln. Arab institutions issued their credits for 20 years with 4-year preferential period at rate 2.5% annual interest. Due to the rise of project cost, missing part may be issued by Azeri govt.
The project cost was revised upon repeat technical study of the road by designer, Arab Consult of Jordan. The cost rose due to the necessity in communications transfer and construction of 5km long section not covered in previous TEO. In particular, it is suggested to erect a new overpass that links the road to new bus station complex. Besides, prices for construction materials and services rose by 44%-45%.