Today.Az » Business » WB determines highway project in Azerbaijan under privileged financing
21 April 2009 [09:49] - Today.Az
The World Bank (WB) has determined a highway project in Azerbaijan, to which bank will invest privileged credit in the sum of $63 million in 2009, the WB Baku office said.
"WB is planning to allocate $175 million to the construction of the
Hajigabul-Bahramtapa highway. Some $112 million will be financed by the International Bank for Reconstruction and Development," the office said.
Before, the privileged credit was planned to direct for construction of the Baku-Shamakha-Mugan highway from two lines to four lines. A section of the Hajigabul-Bahramtapa highway will be repaired.
"The government decided to invest the rest share of allocation to construction of the Hajigabul-Bahramtapa highway," the office said.
The total cost of the project is $200 million.
Highway's length is 124 kilometre. Under the project, construction of the road is $90.11million. Some $72.09mln is expected to be paid by WB and $18.02mln will be invested by Azerbaijan.
The Azerbaijani Transport Ministry offered the World Bank (WB) to reconsider the plan to reconstruct the Baku-Shamakha-Mugan highway. Under the plan the road will consist of four lines.
The Italian Todini Costruzioni Generali S.p.A. company is chosen the general contractor of construction works. Project's consultant is the Finnish Finroad company.
Construction of Tovuz circumferential road is expected to be implemented within the project. Road's length is 7.2 kilometre.
Baku-Shamakha-Mugan highway will connect Baku with west regions in the
country. Project's main goal is to cut transport expenditure, increase of access, transit and security to pass the Azerbaijani East-West corridor.
The highway project was approved by WB Board of Directors on Jan.17, 2006. Loans are allocated via the International Bank of Reconstruction and Development for 20 privileged years in four years and libor+0.5% interesting rate.
/Trend Capital/
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