JAPANESE EXPERTS HOLD TALKS WITH STATE ENERGY COMPANY
Experts of the Japanese Bank for International Cooperation (JBIC), Kauzido Teuchi and Kimikho Khauami, held talks with Azerenergy joint stock company under the construction of the second 400MW-gas steam device at Shimal State District Power Station (SDPS), the JSC told Trend. The talks aim at mulling the details of selection of a consultant for the project.
Earlier Azerbaijan offered the Japanese side to select the more optimal proposal further to submit to the interested companies for urgent implementation of the project. However, the Japanese side did not agree upon the proposal, but suggested a procedure for holding a tender. So, an international render will be held to define a consultant.
An agreement, which commits the JBIC to present to Azerbaijan a privileged long-term credit in the amount of 29,280bn Japanese yens (over $275m) for the construction of the second 400MW gas-steam device at Shimal SDPS, was signed in Baku on 13 May 2005. The JBIC credit was given to Azerbaijan for 40 years with 10-year grace period under 0.75% interest rates. The total budget of the project is more than $330m.
The project envisages the construction of a 400 MV gas-steam device, two-circular 220-KW electricity transmission lines with the length of 107km, as well as the reconstruction of transmission lines and substations.
In compliance with the feasibility study, the implementation of the project take around 30 months, while the Azerbaijani government will try to cut some procedures to intensify the project.