Azerbaijan Transport Ministry does not Agree with Credit Terms of Woori Bank for Reconstruction Roads in Azerbaijan

Azerbaijan, Baku / corr. Trend I.Khalilova / The Deputy Transport Minister of Azerbaijan, Musa Panahov, said that the Transport Ministry of Azerbaijan does not agree with the terms of the credit of the Korean Woori Bank allocated for the project for expansion of the highway from Hajigabul to the Georgian border from dual highway to dual-dual line. "The credit agreement presented to the Government of Azerbaijan contains issues regarding insurance, margin which dissatisfy us and therefore, we continue the negotiations," he said.

According to him, there are many banks wishing to allocate credits for this project, including World Bank, EBRD, Asian Development Bank, JBIC, BNP Paribas.

Woori Bank is intended to be involved in financing the section of the road from Yevlakh to Ganja. The bank plans to allocate $150 mln for this purpose. The bank offers these finances for the period of 14-15 years, with a payment delay of three-four years and interest of libor+margin.

The Government has already presented a mandate for financing of BNP Paribas, but the concluding terms hace not been agreed. The bank presents credit totaling $300 mln for financing the stretches of the road from Hajigabul to Yevlakh ( 184,8 km in length) and from Gazakh to the Georgian border ( 38 km), for a period of 13 years (including 3 years period of grace) and with libor+0,5%.