EBRD drafts 1st stage of largest project in Azerbaijan

The European Bank for Reconstruction & Development (EBRD) has unveiled reasons of postponement of completion of the tender process within the realization of the first part of its largest project in Azerbaijan.

EBRD country representative in Azerbaijan Nil McCain says that currently design of works on the first stage is underway.

“The drawn consultant is working closely with the Ministry of Transport and OJSC Azeryolservis (ARS),” Mr. McCain said.

As a result, the tender for civil works and consulting services on the evaluation and supervision of the construction work, completion of which was scheduled for 21 September, was postponed by a year.

Now its closure is scheduled for 27 September 2013, and the tender process itself is now expected in the first half of 2013.

By Decree #436s from 28 December 2011 the Azerbaijani Cabinet Ministers approved a credit agreement with the European Bank for Reconstruction & Development (EBRD) signed on 15 December 2011 on the road repair & restoration project and the draft agreement between the EBRD and Azeryolservis OJSC under the Ministry of Transport of Azerbaijan.

According to the agreements, a total of $731.8 million from the EBRD loan will be directed to finance the repair work ($240 million on the first tranche and by $245.9 million on the second and third tranches). Consultants on preparation and supervision over project implementation will receive $10.4 million ($7.4 million on the first tranche and by $1.5 million on the second and third tranches). Monitoring of the implementation will cost $0.3 million ($0.1 million on each tranche). Bank’s commission will amount to $7.5 million (by $2.5 million on tranche). Interest rate will be 0.5% per annum.

Under Cabinet’s Decree, the Ministries of Economic Development (MED), of Finance, of Justice and of Transport are to take steps for timely implementation of the two agreements. Besides, the MED and Transport Ministry are tasked to ensure state guarantees for the project. Azerbaijan’s Foreign Affairs Ministry should notify the EBRD of completion internal state procedures of agreements approval. Control over the execution of the Decree was entrusted to the MED.

The agreements were signed by Transport Minister of Azerbaijan Ziya Mammadov, Finance Minister Samir Sharifov and European Bank for Reconstruction and Development (EBRD) General Director for Turkey, East Europe, Caucasus and Central Asia Olivier Decamp.

Under the agreements, the EBRD will provide $750 million to Azerbaijan in three equal tranches ($250 million each). The first tranche is directed for reconstruction of Mingachevir-Bahramtapa road - repair of 156 km road in compliance with modern requirements, accomplishment of transport artery for 500,000 rural population as well as provision of entrance to international highway leading to border between Azerbaijan and Georgia.

Total cost of allocated credit program is $900 million.


/abc.az/