Government Waiting for Authorization in Signing Loan Agreement on Financing Reconstruction of Hydroelectric Power Station
Azerbaijan, Baku / corr Trend I.Khalilova / The Cabinet of Ministers of Azerbaijan is waiting for authorization by the President's Executive Power for signing a loan agreement on the reconstruction of the second phase of the Mingechevir Hydroelectric Power Station, the Government announced on 3 August. Etibar Pirverdiyev, the President of Azerenergy, is proposed to obtain the appropriate authorization.
The Board of the Islamic Development Bank (IDB) approved the project with a credit of $80mln back in January 2007. After the technical aspects of the agreement have been clarified with the IDB, domestic procedures to sign it will be commenced.
According to the draft credit agreement, IDB presents the credit for the term of fifteen years, with a grace period of three years, at the interest rate at 5.95%. The funds will be presented on a mechanism of "leasing". The total value of the project is estimated at $105mln, with $25mln coming from the State.
Works on the Mingechevir Hydroelectric Power Station within Phase I, were carried out as far back as the late 1990s. Financed by the IDB and EBRD, generators and sub-stations were replaced along with the installation of an on-land control (operating) desk. On the whole, approximately $40mln was spent on those activities ($12.5mln granted by IDB and $21mln by EBRD).