Azerbaijan, IDB sign loan agreement

The loan is given for 15 years with a grace period of 3 years. The total cost of plant construction is estimated at 346 million euros with the period of construction of 36 months. Construction work is financed today at the expense of budgetary funds. A contractor of construction is French company CNIM. The company has rich experience in this field. It built more than 120 plants for the incineration of household waste all over the world. The plant will be built within three years plus two years - the period of definition of defects, and the next 20 years - date of operating by CNIM.

It will be possible to reduce the amount of garbage ten times in Baku and its weight three times by exploiting the plant.

The plant for burning waste "Balakhani LTD" is built on a plot of 20 hectares in the village Balakhani, near the existing landfill. The capacity is 500,000 tons of municipal solid waste per year. Moreover, the plant is capable of receiving combustion and medical waste to the volume to 10,000 tons per year. As a result of incineration of waste, electricity will be generated to the amount of 231.5 million kilowatt hours per year, which will be delivered to the city network. The plant will be commissioned in September 2012.

All technical questions on energy transmission and issues related to tariffs, will be discussed before putting the plant into operation. Waste incineration plant will have two lines of 250,000 tons and a turbine to produce electricity. According to the draft, the power of the plant can be increased by 250,000 tons more in future. The ashes formed by burning waste can be used in road construction.

Today, 80% of all household waste of Baku and Absheron is transported to Balakhani ground for open dumping. The Azerbaijani Ministry of Economic Development signed a turn-key-type contract with the French CNIM in 2008. It will be implemented on the basis of DBO (Design - Build - Operate). This means that the responsibility for the design, construction and management of the plant will be assigned to CNIM. As a result of signing of two agreements on Thursday with a group of Islamic Development Bank, the IDB loan portfolio in Azerbaijan reached $ 850 million for 40 projects.


/Trend/