TODAY.AZ / Business

ADB to award $52 million loan to rehabilitation of roads in Yevlakh-Ganja and Gazakh-Georgian border of Azerbaijan

01 June 2006 [18:35] - TODAY.AZ
Asian Development Bank (ADB) has today signed two loan agreements of $52 million total value on the Project "Improvement of East-West Transport Corridor" with Azerbaijani Government.

The document has been signed by Ziya Mammadov, Transport Minister of Azerbaijan, and Matthew Westfall, The Head of Resident Mission of the Bank in Azerbaijan, APA informs.
Mr. Westfall has stated that 127 kilometers and 65 kilometers of inland asphalt roads of Yevlakh-Ganja and Gazakh-Georgian border will be improved within the framework of the project. The project will also support road legislation reforms and good management through strengthening home institutions.

"This project is the first transport investment in our country and is of importance for several reasons. The project covers 6 regions, which have a population of 700 thousand in total, including 87 thousand refugees and internally displaced persons populated in road areas".

Talking about the project, Ziya Mammadov ha said that the ADB will allocate mixed two credits, which are $49 million from its market-based ordinary capital resources (OCR) for road construction and traffic improvement at border area and $3 million privileged credit of Asian Development Fund for the strengthening of institutions, to Azerbaijan. OCR gives credit for 24 years with a 4-year privileged period and with interest rate set in accordance with London Interbank Offered Rate (LIBOR). The privileged credit is given for 32 years with a 8-year privileged time at interest rate of 1% per annum in privileged period and 1,5% per annum for remaining period. Yolnegliyyatservis Department of the Ministry will act in the project through providing road construction and institutions' strengthening. State Customs Committee will provide traffic improvement at border. The project will be finished in 2010. The finance will be expensed towards rehabilitation of 88 kilometers of Yevlakh-Ganja road and 38,8 kilometers of Gazakh-Georgian border.

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