Azerbaijan, Baku / corr Trend I.Khalilova / The Azerbaijani Government has authorized Samir Sharifov, the Finance Minister and President of Azerenerji state energy company, to sign an agreement with the German Development Bank KFW on the construction of the electricity transmission line AzGRES - Imishli. The Cabinet of Ministers announced that the signing will possibly be in ten days.
In accordance with the loan agreement, Germany simplified the terms of the loan agreement. The loan will be issued at an interest rate of eurobor+0% and eurobor will be established in accordance with the rate set at the moment of signing the credit agreement. The previous half-year eurobor for June to December 2006 was 3.42%.
Borrowing for the energy project will be carried out over 12 years with a 2-year grace period.
The bank allocated €30bln to finance the project, providing finance for 85% of the cost of this project. The project envisages the construction of electricity transmission lines with a length of 195km ranging from AzGRES to Imishli. There are also plans to construct a substation in Goranboy and expand the field of electricity delivery to Imishli through establishing new cells, after the construction of ETL with the capacity of 200MW to 700MW.