Azerbaijan Expects Visit of Candidates for Consultant Services on KfW`s and SECO`s Water Project

Business Materials 28 October 2006 14:26 (UTC +04:00)

Five Swiss firms applied for participating in a pre-qualified tender on selection of a consultant aimed at the project on reconstruction of the water networks in Ganja and Shaki. They are expected to come to Azerbaijan in November, this year. According to Namig Abdulayev, Head of the Baku Representative Office of the German Development Bank (KfW), the consultation services will be financed at the expense of a grant of Switzerland's State Economic Relations Secretariat (SECO), therefore, only Swiss firms can have the right to take part in the forthcoming tender. The consultants will observe the construction within the project.

They would like to get acquainted with the water supply systems of Ganja and Shaki on the spot. If they come in November-December, this year, a firm will be determined by the end of the year, and the forthcoming consultants might come to design a report till the beginning of the first quarter of the next year. If everything goes in according with the schedule, then physical works can be launched starting from the second quarter of 2007, pointed out Mr. Abdulayev.

The selection of the general contractor is not envisaged, and even according to separate lots, Azerbaijani firms will be attracted to carry out some works.

The value of the first phase of the project considered for 3.5-4 years has been agreed at the volume of в'¬54.6 mln., в'¬37 mln. (в'¬25.85 mln. of the new credit and the remaining funds from the corresponding works in Imishli) will be granted by KfW. Ten million Euros will be given as a grant of Switzerland's State Economic Relations Secretariat, and в'¬7.6 mln will be given at the expense of the share of the Azerbaijani Government.

Signing of an agreement packages on financing and particular agreements with KfW and SECO on the above mentioned projects was held in August, 2006. According to the procedures, all the agreements will be put into force as soon as the Azerbaijani parliament ratifies them.