Azerbaijan, Baku, Dec. 23 / Trend I.Kalilova /
The German Development Bank KfW plans to begin discussions with the Azerbaijani government in 2011 to provide additional funding to implement the second phase of the project to restore water and sewage systems in the country's Ganja and Shaki regions, KfW Baku Office head Natig Abdullayev told Trend today.
"Providing additional funding will be possible after the start of construction under the first phase "Abdullayev said. "Today, the construction work has been launched in Shaki and the work will be launched in Ganja in March 2011, in connection with what is already possible to announce as tender for the definition of a contractor in January."
The German government has already approved additional funds worth 63 million euros to Azerbaijan to continue operation on full restoration of water supply and sewerage systems in Ganja and Sheki. Additional funding will be allocated for full coverage of the regions in terms of improving water supply system, and installation of modern cleansing facilities for sewage systems. KfW plans to allocate 23 million euros with the total cost of the project worth 30 million euros to fully restore the water supply system in Ganja. At the third stage, the bank expects to allocate 40 million euros for the installation of modern sewage treatment plants.
The project will be implemented in 3.5 years. The first phase envisages the measures to provide Sheki with water by 100 percent, and Ganja by 50 percent. The further development of water supply system of Ganja is envisaged within the second phase.
The first phase of the project envisages improving the quality and reliability of water supply and sewerage system in the cities of Ganja and Sheki with a budget of 55 million euros. KfW will give loans worth 37 million euros, and Seco - 10 million euros in the form of a grant to realize the project in accordance with the agreements signed in Bern in October 2006. The share of the Azerbaijani government in the project is 8 million euros. Consulting services and a partial restoration of infrastructure in Sheki, in particular the purchase of equipment, are planned to be implemented owing to Seco's funds.
