Azerbaijan, Baku, Aug .13 / Trend I.Khalilova /
The Asian Development Bank (ADB) expects to hold negotiations with the Azerbaijani government in September to additionally finance the construction of the Masalli-Astara highway, the bank's Baku office told Trend.
"The talks were expected to be held in August," the office said. "But we will fail to hold them in August as we must specify technical details."
The tender procedure has been completed and the proposals are under evaluation.
In particular, the plan is being updated to buy the land along the highway and to impact on the environment. Moreover, a contractor is being chosen for the second and third sections of the road.
"The final cost of the project, including the amount of the ADB loan will be specified after the tender procedure is completed to determine the contractor for the two sections of the road," the bank's office said.
The bank intends to allocate additional $160-$170 million (third tranche) for Masalli-Astara.
Azerinshaatservis Construction Company was selected to build the first stretch of 22.15 km.
The ADB has allocated $200 million to reconstruct Masalli-Astara highway.
The government's share is $49 million.
Due to rising costs, the project adviser must make the necessary changes to the cost estimate, which was prepared in 2008.
The financing may be implemented at the expense of the third loan of the Multitranche Financing Facility (MFF) for road projects in Azerbaijan, which was approved in the amount of $500 million in August 2007.
Earlier, MFF third loan was considered to modernize a part of East-West main line - Ganja-Gazakh highway.
Due to delays in the project implementation of the ADB extended extended the terms of a loan to Azerbaijan to reconstruct the Masalli-Astara Highway. The loan will be extended until Dec. 31, 2013. Since the loan agreement entered into force in January 2008, the loan resources have remained nearly unused. Earlier the loan period was set to expire June 30.
The ADB has allocated roughly $255.4 million. The first tranche worth $200 million was allocated for the construction of the Masalli-Astara road, and the second tranche ($55.4 million) was allocated for the reconstruction of Ganja ring road.
The adaptation of the whole MFF package is scheduled for to 2014.