Azerbaijan signs loan agreement with OPEC on energy project
Azerbaijan, Baku, July 15 /Trend, I.Khalilova/
The Government of Azerbaijan signed a loan agreement with OPEC Fund for International Development Credit on the project to build 800-megawatt thermal power plant (TPP) Cenub in Vienna on July 15, Azerbaijani Finance Ministry reported on July 15. Azerbaijani Finance Minister Samir Sharifov is on visit to Austria to sign the agreement.
The OPEC Board of Directors approved 20 million euros for Azerbaijan.
Under the loan agreement, the funds are allocated for 15 years with a grace period of three years and an annual rate of 5.1 percent.
The project cost is 664.1 million euro. In 2010, relevant agencies will allocate 117 million euro for construction. At the moment, 434 million euro have been approved for the project. The government believes attracting funds under the ADB guarantee will conclude project financing.
Bayerische Landesbank, Societe Generale and Credit Suisse allocated 300 million euro for the project. The banks issued a loan under a state guarantee for 10 years. These resources will cover half of the construction costs.
The Islamic Development Bank approved 134 million euro in loans Oct. 20, 2009. The station will operate with gas and fuel oil.
The ADB Board of Directors approved $232.32 million in warranty support for the project June 22.
The ADB has cooperated with the Azerbaijani government since 1999.