Azerbaijan, Baku, Dec. 20 / Trend I. Khalilova /
The Azerbaijani Central Bank (CBA) has allocated its third direct loan. The loan is designated for Azerenerji to finance a project to build the 760-megawatt Cenub thermal power plant, the government said.
The first loan worth 750 million manat was allocated by SOCAR for seven years at 2 percent per annum, while the second loan (202 million manat) - Azeraluminium for 10 years at 3 percent per annum.
"The Central Bank has allocated 300 million manat to construct a power plant, thus fully covering the needs in financing the project," a source in the government said.
Previously, the government planned to draw these funds from a consortium of commercial banks under guarantee support for the Asian Development Bank (ADB).
The ADB Board of Directors approved $ 232.32 million in warranty support for the project June 22.
The organizers of the deal are Societe Generale and City Bank.
Over 80 percent of the loan, to be provided by commercial banks to realize energy projects, may be covered due to warranty support.
The government refused from the ADB guarantees for this project. It prefers the internal sources of financing.
Azerenergy's guaranteed assistance will be the ADB's first experience in the South Caucasus.
The project cost is 664.1 million euro. At the moment, 494 million euro have been approved for the project. The government believes attracting funds under the ADB guarantee will conclude project financing.
Bayerische Landesbank, Societe Generale and Credit Suisse allocated 300 million euro for the project. The banks issued a loan under a state guarantee for 10 years. These resources will cover half of the construction costs.
The Islamic Development Bank approved 134 million euro in loans Oct. 20, 2009. The station will operate with gas and fuel oil. The OPEC Board of Directors approved 20 million euro for Azerbaijan. Under the loan agreement, the funds are allocated for 15 years with a grace period of three years and an annual rate of 5.1 percent. The Abu Dhabi Fund for Development's Board of Directors approved a $60-million loan.
Cenub will operate with gas and fuel oil.
The official exchange rate is 0.7988 manat to $1.
