TODAY.AZ / Business

Two loans signed for Masalli-Astara highway project

15 January 2008 [18:48] - TODAY.AZ
The Asian Development Bank (ADB) and the Government of Azerbaijan today signed two loans totaling US$200 million to finance the 1st Project under the Road Network Development Program - Masalli-Astara Section of the North-South Highway.

This comes as a first tranche of the $500 million multi-tranche financing facility approved by the ADB Board of Directors in September 2007.

The Project involves the construction of 59 kilometers of a new expressway between Masalli and Astara on the North-South Highway, rehabilitation of local roads in the project area, installation of a vehicle weighing station along the new expressway, and project support and capacity building for road network management.

“The road network of Azerbaijan is inadequate to meet the needs of a rapidly expanding economy. The road network needs to be developed to spur growth of trade, investment and tourism in Azerbaijan,” says Hong Wang, Principal Transport Economist of ADB’s Central and West Asia Department.

“Connectivity, both domestically and internationally, is the key to sustainable development in Azerbaijan. We can help design good projects based on international best practice, and bring better transparency and efficiency to project implementation. Improving road connectivity and infrastructure will reduce transport costs, enhance access to markets for producers in the regions, facilitate intra-regional trade, expand economic and job opportunities, and foster social development" Mr. Hong Wang adds.

ADB is providing a blend of two loans - $190 million from its ordinary capital resources for road improvement and $10 million from the concessional Asian Development Fund for institutional strengthening.

The OCR loan has a 24-year term, including a grace period of four years, with interest determined in accordance with ADB's LIBOR-based lending facility.

The concessional loan has a 32-year term, including a grace period of eight years, with interest rate set at 1.0% per annum during the grace period and 1.5% subsequently.

The Ministry of Transport will be the executing agency and the AzerRoadService Joint-Stock Company under the Ministry of Transport will be the implementing agency.

Visit www.adb.org/azrm for more about ADB's work in Azerbaijan.***

ADB, based in Manila, is dedicated to reducing poverty in Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance.

Established in 1966, it is owned by 67 members - 48 from the region.

In 2006, it approved loans and technical assistance totaling $7.97 billion and $241.6 million, respectively.    

/Today.Az/
URL: http://www.today.az/news/business/42358.html

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