Azerbaijan, Baku, 21 July / Trend corr. I.Khalilova / The Asian Development Bank (ADB) is to launch the negotiations with Azerbaijan to finance railway projects in the country, ADB Baku office reported on 21 July. On 13 August, the bank's mission will pay a visit to Azerbaijan.
[The Asian Development Bank is also included into the preliminary list of financial, institutes to attract funds for railway projects.]
ADB will propose a Multitranche Financing Facility with a total sum $550mln and technical support to develop project with the sum of $1mln to Azerbaijan.
Earlier ADB expressed readiness to soften financing conditions on concession loans from libor+0.6% to libor+0.2%. According to the new proposals the credit resources have been made on the concrete railway projects. Credits will be rendered for 25 years with privileged period for eight years. Asian Bank proposes to cut service concessions from 0.35% to 0.25%.
The funds by ADB will be spent to upgrade the railway infrastructure in the country, as well as to purchase new locomotives and to increase speed.
Azerbaijan has been cooperating with ADB since 1999. ADB has approved credits under the state guarantee $304mln taking into consideration $200mln to reconstruct highway.
On 21 July, the official currency rate is 0,8056 AZN/USD.
The correspondent can be contacted at: [email protected]