The Transport Ministry of Azerbaijan set up the construction of Baku Circular Route 1.Trend reports
The budget of the project is $49.5mln. The contractor of the project is Mak Yol.
The total cost of the road-building project is $51.69 m. The project was proposed to be implemented at the expense of a $15.27m granted by the Kuwait Development Fund and the Arab Development Fund Abu-Dhabi which approved it at $10m. The credit of the 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%.
