Cost of ADB Project on Application of Alternative Electrical Sources in Azerbaijan Changes
Azerbaijan, Baku / corr. Trend I.Khalilova / In November-December ADB consultant - a Swiss-Indian Consortium Entec - will complete preparing the project on application of alternative electrical sources in Azerbaijan, ADB Baku Office informs. 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.
According to the preliminary information, the project is estimated at $30 mln although it had been increased up to $45 mln earlier. Part of the credit is envisaged to be allocated on privileged terms, but the concluding agreement has not been reached yet.
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.