The Transport Ministry of the Republic of the Azerbaijan announced that it intends to conclude a contractor agreement with Mak Yol and Kopri BM, who won a tender for the construction of Baku Circular Route 1, Trend reports.
By the end of the year, it is planned to set up the implementation of the project. The companies proposed to carry out work with the budget of $49.5m. Abu-Dhabi
The total cost of the road-building project is $51.69 m. Firstly, the project was proposed to be implemented at the expense of a $15.27m granted by the Kuwaiti Development Fund and the Arab Development Fund Abu-Dhabi which approved $10m. The credit of Arab financial institutions was allotted for 20 years with 4-year grace period under rate of 2.5% per year. Azerbaijan is also probable to approve funds under the project as its prices increased by $26.42m.
The cost of the project was clarified upon repeated technical investigation of the road by a designer from a Jordanian company Arab Consult. Increase in the price of the project is related to the necessity of replacement of the communications, as well as construction of a 5km section and relevant infrastructure development, which was not included in the feasibility study of the project. It is also planned to construct a new over bridge, which connects the road to a new bus station complex. Some mistakes were made during the development of the feasibility study in 1990s, whereas the price of construction materials and services has risen by 44%-45%.