Azerbaijan Launches Reconstruction of Highway
Azerbaijan, Baku/ Trend , corr. S. Aliyev/ The Azerbaijani Transport Ministry is expected to hold a ceremony to launch the reconstruction of the Highway - Alat-Astara (south bound) tomorrow on 18 April, a source at the Ministry said.
For the reconstruction, the World Bank (WB) has granted $200 mln for widening and changing the route of the Highway - Alat-Massali( a part of the existing project). Due to this, the length of the highway will reduce from the existing 230 km to 200 km. Finroad Ltd of Finland is the consultant of the section of Highway - Alat-Massali.
This year, the board of directors of the Asian development bank (ADB) has intensions to approve a multitranche package worth $500 mln under the new project - Multitranche Financing Facility (MFF) and a credit agreement on the project of reconstruction of sections of the Highway - Massali-Astara (a part of the existing project as well), with financing which will be carried out at expense of the first tranche under MFF.
According to preliminary estimations made by American consultancy company, TERA, the value of the project on reconstruction of the mentioned highway is estimated at approximately $215 mln, with $190 mln falling to an ADB credit, and $25 mln financed by the Azerbaijani Government.
The ADB credit resources will be partially ($170 mln) granted from the general resources of the bank (the period of the credit is 24 years with a four-year lax period, and under the interest rate of libor+1% per annum), and $20 mln - lax (the period of the credit is 32 years with a eight-hour lax period, and under the interest rate at 1% during the lax period, and 1.5% - during the remaining period). The lax part of the credit is considered for the reconstruction of renewed rural roads linking to highways.