Azerbaijan, Baku /corr. Trend I.Khalilova / The talks at the Transport Ministry of Azerbaijan between the Government of Azerbaijan and Asian Development Bank (ADB) with regards to the Multitranche Financing Facility agreement and credit agreement on the project of reconstruction of Masalli-Astara highway, a source stated at the Ministry. The talks had begun on 6 August and today the consultations on financial issues will continue at the Finance Ministry.
As a result of talks, the Government undertook obligations to bring the legislation into conformity with the demands of the European Union by 2010. In addition, ADB suggests adopting a new Law on Roads.
In addition, the obligations include adopting a new legislation on license for motor transport means involved in cargo transportation. Unifying legislation on cargo transportation envisage adopting new European standards 'Euro- 4'.
A mission of ADB's Transport Department headed by Hong Vang is on visit to Baku.
Tis 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.
The ADB credit resources will be partially ($190 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+0.6% per annum), and $10 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 feasibility study for the project has been devised by the American TERA Company.