Azerbaijan, Baku, 21 July / corr. Trend I.Khalilova / The Asian Development Bank (ADB) plans to issue the second tranche to Azerbaijan in 2008 within the framework of the Multitranche Financing Facility (MFF) for road projects, which was adopted in the amount of $500mln in September 2007, the ADB Baku Office said on 21 July. A total of $200mln of the sum was allocated to reconstruction of the Masalli-Astara road in 2007.
Within the framework of the second installment, the ADB intends to finance the extra cost of the project on reconstruction of the sections of Yevlakh-Ganja and Gazakh- the Georgian border west-eastern motorways. Particularly, about $50-60mln may be additionally allocated to the construction of Ganja circular road, as of preliminary estimation.
The lump cost of the first 88.8km long section of Yevlakh-Ganja amounts to $58.7mln. The Islamic Development Bank will finance $10.4mln of this amount through loans, the Saudi Development Fund $11mln, the ADP $24mln and the Azerbaijani Government $13.3mln. The construction of the second 38.8km-long section of Gazakh- the Georgian border motorway costs $30mln and will be financed by the ADP's $28mln loan and the Azerbaijani Government's funds ($2mln).
Talks, which will focus on granting additional financing to this road project, is expected to take place in Baku in August, the Government said. It will be held during a visit of Doong So Pyo, a new supervisor of the ADP on transport projects in Azerbaijan. Earlier Hong Vang, a senior economist on road projects, held this position at the Bank.
The MFF package is expected to be spent by 2014.
The exchange rate for US dollar was AZN 0.8056 on 21 July.
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