German Bank Presents to Azerbaijan Final Variant of Financial Agreement

Business Materials 10 September 2007 14:17 (UTC +04:00)

Azerbaijan, Baku / corr TrenCapital I.Khalilova / The German bank KfW has send to the Azerbaijani Government the final draft intergovernmental agreement on financial cooperation, the Cabinet of Ministries said on 8 September. The document was conveyed through the embassy of Germany in Azerbaijan to the Foreign Ministry.

The Bank provides financing of 2 projects for development of cadastre in Azerbaijan and consultation service within the project on reconstruction of the water supply systems in Ganja and Sheki Districts of Azerbaijan.

KfW is ready to allocate a privileged credit in the sum of €2.5mln for establishment of cadastre and a grant in the sum of €1mln for institutionalization of a beneficiary organization. At the expense of the funds, it is planned to establish a real estate registration system in Ganja or Sheki, or possibly in both cities.

Within the framework of the water project, it is planned to allot an additional €2mln for payment of the consultant services to manage the project. Implementation of the project has already begun, and in compliance with the accord signed between the Azerbaijani and German Governments, KFW allotted €37.3mln for forty years on a privileged period of ten years under an annual 0.75% interest rate.

The cost of the first phase of the project, which is calculated to last four years, is €54mln, of which €10mln will be allocated as a grant by the Swiss State Economic Relationships Secretariat (SECO) and €7mln by the Azerbaijani Government.