Azerbaijan, Baku, Oct. 17 /Trend, I.Khalilova/
The Islamic Development Bank (IDB) sends a mission to Azerbaijan to review the implementation of the energy projects - the reconstruction of phase II of Mingachevir hydroelectric power plant and the construction of the 800-megawatt station Cenub (near Ali Bayramli thermal power plants), IDB Baku office told Trend on Monday. IDB mission, led by bank's specialist Mohammed Al Sayed will be in Baku from Oct. 23.
"This visit takes a working character, because the mission is going to get acquainted with the advancements in implementation of energy projects financed by the bank," said the source.
The mission of the bank will also get acquainted with the construction of waste incineration plant in the Balakhani settlement of Baku, in particular with the energy component of the project. The has allocated 150 million euros for the project.
The IDB Board of Directors approved the issuance of credit worth $80 million to finance the project in January 2007. The remaining costs ($ 25 million) on a project were entrusted to the Azerbaijani government. The work within the project continues. According to the draft agreement, the IDB's loan is granted for 15 years with a grace period of three years and an interest rate of 5.95 percent.
"The mission plans to discuss the time of completing the reconstruction of the plant," a government source said.
Mingachevir hydroelectric power station was built in 1980. It is the largest hydroelectric power plant in Azerbaijan. It has eight units with a capacity of 300 megawatts each. But the wear of the equipment does not allow to develop full capacity. The work at Mingachevir hydroelectric power station within phase I were held in late 1990s. Generators, substations were replaced by financing from the IDB and the EBRD. A ground-based remote control was installed. In total, over $40 million was spent on this work, of which $12.5 million dollars were allocated by the Islamic Development Bank, and $21 million -by the EBRD.
The IDB has allocated 134.4 million euros for the construction of 800 MW new plant Cenub (near Ali Bayramli thermal power plants). Bank lending was granted for a period of 17 years with a grace period of two years.
Realization of the construction project of Khachmaz substation, designed to increase energy exchange between Azerbaijan and Russia, has been completed. The substation works in operation.
The substation "Khachmaz" is of great importance from the standpoint of improving the maneuverability of the power system. It will be powered from a power line Yashma-Derbent, on which Azerbaijan exchanges power with Russia. Until now, the Azerbaijani side, getting electricity from Russia in Yashma, was forced to transport it back to the border to supply the northern regions due to lack of such a substation. It is designed to serve 500,000 people living in the northern areas of the country.
A 330/110-kilovolt substation in Khachmaz region was constructed by a Chinese company CNEEC. The IDB granted a loan worth $ 13,508 for 12 years at 6 percent per annum to realize the project.
Azerbaijan has been an IDB member since 1992. Today, the IDB portfolio in the country has reached $700 million. The IDB changed their approach to financing projects in Azerbaijan by increasing the maximum amount of credit allocated for one project nearly five times. About $300 million has been allocated for the energy projects.