Azerbaijan, Baku, may 25 / Trend , N. Ismayilova/
The World Bank will complete talks on reconstruction of Hajiqabul-Bahramtepe highway in a week. The bank plans to issue $63 million in soft loan for the project in the 2009 financial year, the WB Baku office said.
Manager of the project Jack Bure is in Baku at the moment. The talks are expected to end with signing of a protocol later this week.
The Bank plans to provide $175 million for the construction of roads with length of 116 kilometers. Accordingly, $112 million will be financed through the IBRD.
Before, the privileged credit was planned to direct for construction of the Baku-Shamakha-Mugan highway from two lines to four lines, but due to the fact that the international standards required environmental assessment, public discussion within 120 days, to complete these procedures before the end of June would be impossible. [Preferential loans are envisaged for 2009 fiscal year, which expires June 30.]. In addition, there are plans to overhaul the existing road on the Hajigabul-Bahramtepe highway.
"Not to lose privileged part of financing, it was decided to direct it on reconstruction of Hajigabul-Bahramtepe, which does not require these procedures, transmigration of residents away from the road and purchase of lands," the office said.
The total cost of the project is $200 million.
Furthermore, in parallel the preparation will be held for the Baku-Shamakha-Mugan highway construction project.
Highway's length is 124 kilometre. Under the project, construction of the road is $90.11million. Some $72.09 million is expected to be allocated by WB and $18.02 million will be invested by Azerbaijan. The Azerbaijani Transport Ministry already devised new accounts doe to rise in the cost of project and change in the plan of construction (under the plan the road will consist of four lines).
The Italian Todini Costruzioni Generali S.p.A. company was selected general contractor of construction. 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.
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