Azerbaijan, Baku / corr Trend I.Khalilova / The French bank BNP Paribas is interested in financing two road projects in Azerbaijan. The Cabinet of Ministers of Azerbaijan said that along with loan to expand the highway from Hajigabul to the Georgian border from a two lane to four lane road, the French bank is also prepared to finance the reconstruction of the highway from Shamakhi District to Zakatala District of Azerbaijan.
The bank stated its readiness to allocate a $400mln loan for each project. The loan for the first project is allocated under the guarantee of the Japanese Bank for International Cooperation (JBIC) and the Japanese insurance agency Nexy, the second project will be guaranteed by the Israeli insurance corporation ASHRA.
The Cabinet does not exclude the probability of by BNP Paribas financing both projects. Major progress in negotiations has been observed in a loan for the expansion of the highway running to the border. Only the terms of the loan are to be coordinated.
The Finance Ministry of Azerbaijan insists on decreasing the rates for the loan from libor+0.75% to 0.75% per year. The loan is given for a period of 20 years with a 4-year grace period.
A protocol has been compiled on an automobile route to the border in Zakatala (Shemakha-Ismatilli -Gabala-Sheki-Gakh-Zakatala-Balakan) and it will be discussed shortly at Azerbaijan's proposal.
The next visit of the BNP Paribas experts is scheduled for late September - early October.