...

ADB to Hold Next Consultations on Multitranche Package for Azerbaijan Road Project

Business Materials 27 June 2007 19:25 (UTC +04:00)

Azerbaijan, Baku / corr Trend I.Khalilova / Next week, the Azerbaijan Government and the Asian Development Bank (ADB) will hold consultations on the credit terms for the reconstruction project of part of the Masally-Astara highway, according to the Baku office of the ADB.

The consultations will clarify which road sections which will be financed at the expense of the funds by the Multitranche Financing Facility (MFF) because the Board of Directors plans to simultaneously confirm a multitranche package worth $500mln and a credit agreement on the project.

The ADB credit resources will be partially ($190mln) granted from the general resources of the bank (the period of the credit is twenty-four years with a four-year lax period, and under the interest rate of libor+1% per annum), and $20mln - lax (the period of the credit is thirty-two years with an eight-year 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 the highways.

Under the MFF, the Asian Bank plans to finance three road projects, including the Masally-Astara motorway project.

Official credit talks have been scheduled for the end of July, and respectively, the credit agreement on the first road project under this mechanism will be submitted to the Board of Directors by the end of August.

The feasibility study of the project was developed by the US company TERA.

Latest

Latest