Azerbaijan, Baku, July 27 /Trend E. Ismayilov/
The Azerbaijani government and the Asian Development Bank (ADB) have signed an agreement on the second loan worth $200 million for the Masalli - Astara highway construction project in Baku today, ADB office in Baku told Trend on Friday.
The agreement was signed by Azerbaijani Minister of Transport Ziya Mammadov and head of ADB's Baku office Olli Norojono.
According to the agreement, the loan has been allocated for 24 years with a grace period of four years and at a rate of six-month-libor +0.4 percent.
The loan will cover the costs for the construction of B and C sections of the Masalli - Astara highway.
This road project is financed through Multitranche Financing Facility (MFF) for Road Network Development Programme worth $500 million. The loan was approved in August 2007. About $400 million were allocated through MFF for the construction of the Masalli - Astara road.
The first loan [$200 million] will be used to build the first road section (A) by the "Azerinsaatservis" construction company.
Azerbaijan is a member of ADB since 1999. The ADB's active credit portfolio reaches $680 million. The ADB has allocated grants amounted to $13.122 million to the Azerbaijan government and local companies during the period of cooperation.
The ADB was established in 1966 and has 67 members. The headquarters of the bank is located in the capital of the Philippines, Manila. Azerbaijan became a member of the Asian Development Bank on December 22, 1999. The country's participation share in the bank's capital is 0.5 percent.
Japan and the US (31.2 per cent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent) are the ADB leading shareholders.