At the end of January the Asian Development Bank (ADB) will hold a workshop in Baku on the results of findings of the application of alternative electrical sources in Azerbaijan. ADB Baku Office informed Trend on 11 January 2007 that the research was carried out by an ADB consultant вЂ" a Swiss-Indian Consortium Entec, within the framework of technical assistance for such applications in Azerbaijan.
The findings will enable projects to be financed by the ADB. The Bank intends to use the current form of financing, but not like the financing for transportation projects such as the Multitranche Financing Facility mechanism, the same source added. Azerbaijan is not a big country and not many projects are required for the alternative electrical sources.
The credit agreement is scheduled to be adopted at the beginning of 2007. ADB is planning to allocate a $40m credit for the implementation of the project. A $25m loan will be provided on beneficial terms, whereas $15m are on ordinary terms. However, the Bank does not rule out increasing or cutting this loan.
Some $900,000 has been allocated for conducting research to define different ways and the potential for the development of recoverable electrical sources. $200,000 of this sum will be provided as a grant by the Finish Government, $500,000 by ADB and $200,000 by the Government of Azerbaijan. The grant agreement was signed on 26 May 2006. Technical assistance will cover 10 months.
Providing regions with alternative means of energy, using wind mills, mini hydraulic and solar energy are the major objectives of this project. These factors are necessary for sustaining agriculture in the regions.