Azerbaijan, Baku, November 2 / Trend I. Khalilova /
The Asian Development Bank is ready to render guarantee support to the Azerbaijani government for drawing loans up to $200 million for construction of 800-megawatt thermal station Cenub from commercial banks, the bank's office in Baku said.
"This guarantee will increase term of drawn loans. It can cover 13 years and reduce interest rates on loans," the representation said.
The Islamic Development Bank has already approved financing to the amount of $200 million for construction of Cenub station on October 20 (near Ali-Bayramli thermal station).
Funds worth €300 million were received from three banks - Bayerische landesbank, Societe Generale and Credit Suisse to finance this project. The loan was given for 10-year-state guarantee.
Loan resources of the bank's consortium will pay off half of cost of operation connected with construction of the station. Cenub station will work both on gas and black oil.
Azerbaijani company AZENCO conduct construction operations at the station.
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