Azerbaijan, Baku / corr Trend I.Khalilova / The French bank BNP Paribas and the Azerbaijani Transport Ministry have finalised the first round of talks on the credit agreement within the framework of a project to expand the motorway from Hajigabul to the Georgian border from two-lanes to four lanes. The Ministry announced that the bank stated its readiness to increase the credit from the original figure of $300mln to $400mln.
The loan is allocated for 14 years with a 4-year grace period and libor+1.85% rates. The Ministry said that talks with the bank will be continued to simplify these terms.
As a result of talks in Baku, representatives from different ministries and administrations signed a protocol which will be submitted to the Cabinet of Ministers in due course.
The funds will be used for the reconstruction of the Hajigabul-Yevlakh highway (184.8km) and Gazakh-Georgian border highway (38km).
The Transport Ministry reviewed a feasibility study on the basis of technical documentation developed within the framework of TACIS. A 4-lane road has been constructed to Hajigabul and the rest of the highway linked to it.