World Bank to approve on 17 January loan for second motor highway construction
Approval of the loan for funding the second motor highway construction is planned at the sitting of the World Bank (WB) Board of Directors today, the World Bank Baku office told Trend. According to the Protocol, signed by the results of the talks between the Vice Premier Abid Sharifov and the WB transport mission head Olivier Le Ber, the bank will allocate $200 million for the funding of the project, consisting of two sections: Alyat-Masalli and Baku-Shemaha-Mugan.
It will be the first tranche for the second motor highway. Deficient funds for these two projects may be allocated within the second loan. Such approach is explained by the need to avoid delays in the project implementation and the government will not pay commissions from the unused part of the loan.
For funding Alyat-Masalli road the bank plans to allocate on the whole about $230-240 million, Baku-Shemaha-Muganli- some $100 million.
Crediting of the motor highway construction is envisioned by the bank under the conditions of the International Bank for Reconstruction and Development for 20 year period with the 4 year preferential period and the libor+0,5% interest rate.