German KFW presented an interim agreement for the project on reconstruction of water networks in Ganja and Shaki to Azerbaijan, the government told Trend. In accordance with the agreement, the bank will allocate 37.3m euros for 40 years with 10-year grace and 0.75% interest rate to the government to implement the project.
The value of the 4-year first phase of the project is unified at 54m euros. Besides the German bank, 10m euros will be allocated by SECO as a grant, 7m euros - Azerbaijani government. Nevertheless, under the feasibility study the implementation of the project totally requires from 80m euros to 100m euros. The rest funds are supposed to be invested by network operators.
The operators of the both networks will be determined through tender, which will be announced jointly by KFW and the Azerbaijani government. The networks will be placed at disposal of the operators at least for 4 years.
The loan agreement is expected to be signed in early May.