ADB extends loan term for Azerbaijan

The Asian Development Bank (ADB) has approved a request from the government to prolong the period of the loan under the multitranche package (Multitranche Financing Facility - MFF) for road projects in Azerbaijan (Road Network Development Programme) to three years, the head of ADB representation Ollie Noroyono told Trend.

Agreement on the framework of credit between Azerbaijan and ADB on multitranche financing for road projects in Azerbaijan was signed on August 8, 2007.

"Due to the delay in granting tranches to Azerbaijan under the programme and the availability of the unused portion of credit, we have discussed and approved the request to prolong the period of the loan," Mr Noroyono said.

He said that the latest date by which payment can be made for any tranche of the programme is now set for December 2017. The last tranche of multitranche financing is expected to be provided no later than December 2013.

From $500 million of the ADB multitranche package for the construction of roads approved in August 2007, $255.4 million has already been allocated.

The first tranche of $200 million has been allocated for the construction of the Masalli-Astara road, the second (55.4 million) for the reconstruction of the Ganja circle road. The bank plans to allocate an additional $200 million (third tranche) by the end of 2011 to continue the construction of a four-speed rail line at Masalli-Astara. The Azerinsaatservis construction company has been chosen to build the first section of the road and the tender procedure is still on-going on the other two sites (B and C).

The question of approval for the fourth tranche of $ 44 million dollars will be discussed in 2012. Funding for this section of road has yet to be determined.


/Trend/