Azerbaijan, Baku, April 6 / Trend , I. Khalilova/
The Asian Development Bank (ADB) has increased the multi-tranche financing (MMF) to restore water supply and sewerage system in Azerbaijan by 20 percent. Not it totals $600 million, ADB Baku Office said.
"The decision was adopted after Azerbaijani government gave consent to increase multi-tranche financing," the bank said. "It will enable to meet increasing demand for additional finance via the reserve fund also for the road projects for which ADB introduced multi-tranche package in the country."
The technical details are being designed at the moment. The ADB is ready to finance expansion of the project to improve water supply and sanitary services in Agdash, Goychay and Nakhchivan.
Agjabadi, Beylagan and Balakhani are expected to be added to the list.
Representatives of the office could not divulge amount of additional investments in six regions or multitranche package, because it will require a new feasibility study. Azersu Joint Stock Company (JSC) has been involved in discussions on this issue. It is necessary to re-assess cost of the project due to price rise for construction materials. Earlier it was planned to cover cost rise of the project through increasing the Azerbaijani government's share in the project's capital.
Water mission led by specialist Vijay Padmanob Khan is in Azerbaijan at the moment. The mission had been to the regions which the project covers and also in Agjabadi.
The current design of the project was developed in 2004, whilst prices for construction materials considerably increased in this period and basically, rise of expenses is observed on sewage. Price rise of the project was assessed at $5-6 million, but the government said that expenses will be high subject to the current scale of prices. Azerbaijan offered to install contemporary equipments at sewage system of regions covered by the project and it also affected cost of the project. At the same time, the ADB's project envisages full restoring water supply and sewerage in the chosen regions.
Preliminary cost of the project made up $39.9 million. The Asian Bank initially issued $30 million loan to finance the project and $9.9 million fell on the Azerbaijani government.
The realization of the project was launched in 2008.
AICO Consulting Ltd/European Consultans Organization is a consultant of Azersu JSC on water project. The consultant developed a report on details of work planned for three years.
It is planned to hold structural reforms to develop water supply systems and infrastructure in Agdash, Goychay and Nakhchivan by 2010 and in Agjabadi, Beylagan and Balakan - in the case expanding coverage zones.
Do you have any feedback? Contact our journalist at: [email protected]
