Azerbaijan, Baku, Feb. 26 / Trend A. Badalova /
The Asian Development Bank (ADB) will consider the Power Distribution Development project at the board of directors in Azerbaijan on May 15, the statement posted at the official website of the bank said.
Azerenergy Joint Stock Company (Azerenergy), the state-owned enterprise responsible for power sector development and operation in Azerbaijan, requested ADB to support the power sector development, particularly on the enhancement and rehabilitation of power distribution networks. Azerenergy has requested ADB to provide a multi-tranche financing modality (MFF) in the amount of up to $500 million for Power Distribution Development Investment Program (the Program). The first loan is expected to hit $ 150 million. It will be allocated from ADB ordinary credit resources.
The proposed Program will enhance and upgrade the distribution networks cover of about 40 administration districts under Azerenergy's managed power system, to improve reliability of power supply, reduce distribution losses, enhance energy efficiency, and improve Azerenergy's financial performance
The data on the project will be specified on May 9-13.
Investments worth $3,8 billion to build new thermal and hydroelectric power plants (1,500 MW), modernize existing generation facilities and strengthen capacity of the transport network are part of the approved state program of energy sector in Azerbaijan (2005-2015).
The Azerbaijani government has been cooperating with the ADB since 1999. Today, the bank realizes Power Transmission Enhancement Project in the energy sector of Azerbaijan. It has already announced a tender to choose a general contractor. The project will reconstruct power lines to be exploited for more than 60 years. The Asian Bank grants a loan worth $160 million for 20 years with five-year grace period and annual rate of LIBOR of 0.08 percent.
The construction of double-circuit of 220-KV Transmission Line from Mingachevir hydroelectric power to Absheron substation is envisaged under the project.