Azerbaijan, Baku, 21 May / Trend corr. I.Khalilova / The Azerbaijani Government has refused the finances for the project to construct the highway from Muganli to Evlakh (part of the highway of Baku-Shamakha-Yevlakh) from the French bank BNP Paribas. The government refused at the last stage of negotiations.
No foreign investments are needed to construct the highway. However, it is not excluded that the project will be implemented at the expense of the country.
BNP Paribas was prepared to allocate $320mln for reconstruction of the highway from Muganli to Yevlakh- 156km in length. Under the agreement, the funds were proposed at a guarantee of the Israeli insurance corporation ASHRA. Credit was proposed to be provided for a14 year's term with the privileged period 4 years and on libor+0.45% year rate. Previously, the bank was ready to allocate $400mln, with $80mln on the commercial conditions. During the negotiation process, Azerbaijan refused from the commercial part of credit. Azerbaijan will finance the rest part itself.
At present, the negotiations are being held with the French bank on the project to expand the road Yevlakh-Zakatala-Georgian border, 164km in length from two lanes to four lanes. It is expected that the credit agreement will be reached with the bank. BNP Paribas proposes $400mln for implementation of the project at a guarantee of the Japanese Bank of International Cooperation (JBIC) and insurance agency Nexy, at libor+0.75% rate for 20 years term with 4 or 5 privileged years. Credit is divided into the two parts.
The official currency rate on 21 May was 0,8247 AZN/USD.
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