JBIC Water Supply and Sewerage Project Expensive due to Inflation
Azerbaijan, Baku / corr Trend I.Khalilova / The Japanese Bank for International Cooperation (JBIC) plans to sign a protocol with the Azerbaijan Government for a project to improve the water supply and sewerage system in Azerbaijan. In this respect, the government announced that a JBIC mission is expected to visit Baku at the end of May. The protocol will be signed by the Deputy Premier Abid Shaifov.
Within the framework of a pilot project, Tokio Engineering/ASPI company has developed a preliminary feasibility study on six districts, namely Salyan, Neftchala, Guba, Khachmaz, Khizi and Siyazan. As a result, the project is estimated to $300mln. The number of districts will be expanded for the duration of the general project. It is proposed to include Shamakhi and Barda on the list, which had previously been proposed for the World Bank's water project.
During the initial stages of talks the Government requested that JBIC expand the project but this was rejected. The Government confirmed its readiness to borrow $150mln, taking into consideration that with inflation in the country, the cost of the project has become expensive. In light of the Japanese bank's interests to operate in Azerbaijan, implementation of the project will be intensified.