Azerbaijan Proposes KfW to Finance Construction of Twenty Hydroelectric Power Stations in Regions

Oil&Gas Materials 4 December 2007 16:06 (UTC +04:00)

Azerbaijan, Baku / Trend corr. I.Khalilova / A consultant of the German Bank of Development KfW specializing in hydraulic power development has launched discussions of a new project to construct twenty hydroelectric power stations in the regions of Azerbaijan, Natig Abdullayev, KfW Baku Office's head reported on 4 December.

The bank was submitted a feasibility study developed by the Azerenergy company. The project stipulates the construction of the hydroelectric power station with a capacity of 1.5 or 2 megawatt in Zagatala or Beylagan regions of Azerbaijan. The cost of the station is $1mln. "Initially, we want to construct pilot stations around the villages in order to demonstrate to the public the high load in the hydroelectric power station during rush hours," Abdullayev said.

It will be the first project of KfW in the country of renewable electric energy sources. However, earlier the Bank expressed its will to finance energy production. "Today there are no legislative acts which obligate Azerenergy to receive electric energy from private electric stations," Abdullayev said. The Bank is planning to discuss the issue with the Government before implementation of projects. The consultant will meet with the leadership of Azerenergy and Fuel and Energy Ministry of Azerbaijan within the framework of the visit to Baku.