AzerEnergy: "EBRD wants electricity tariffs to be several times increased"

Proposals advanced by the European Bank for Reconstruction and Development (EBRD) on funding of construction of the Azerbaijan Power Plant do not satisfy the management of the AzerEnergy Open Joint-Stock Company (OJSC). APA was informed about it by the Azerenergy vice-president Marlen Asgarov.

According to Mr.Asgarov, the EBRD's terms and requirements are very hard. So, in return for the credit the Bank lends, it wants electricity tariffs to be several times increased by 2010.

"We can not do it. Another problem is that the EBRD grants the credit in several tranches. We want to receive the credit in one tranche and we explain it so that prices of metal, equipment and other materials are rising every day. They do not agree with us," the AzerEnergy official stressed.

Mr.Asgarov noted that the EBRD wants equipment and facility to be purchased from the organizations which are in close relations with the Bank. This is also one of the factors displeasing AzerEnergy: "The mostly discussed topic is the amount of the credit. We want $150 million. The EBRD wants to lend us $110 million and thinks that the rest of funds must be supplied by the government."