Azerbaijan, Baku / corr Trend I.Khalilova / The Islamic Development Bank sent the final version of the loan agreement to reconstruct the second phase of the Mingechevir Hydroelectric Power Station to the Government of Azerbaijan, according to the Cabinet of Ministers of Azerbaijan. After being signed by the Etibar Pirverdiyev, the President of Azerenergy, the document will be returned to the bank.
The Board of the Islamic Development Bank (IDB) approved the project with a credit of $80mln back in January 2007. After the technical aspects of the agreement have been clarified with the IDB, domestic procedures for its signature will commence.
According to the draft credit agreement, IDB presents the credit for the term of 15 years, with a grace period of three years, at an interest rate of 5.95%. The funds will be presented on a mechanism of "leasing". The total value of the project is estimated at $105mln, with $25mln coming from the State.
Works on the Mingechevir Hydroelectric Power Station within Phase I, were carried out as far back as the late 1990s. Financed by the IDB and EBRD, generators and sub-stations were replaced along with the installation of an on-land control (operating) desk. On the whole, approximately $40mln was spent on those activities ($12.5mln granted by IDB and $21mln by EBRD).