Azerbaijan, Baku, Dec.13 /Trend A.Akhundov/
The Asian Development Bank (ADB) expects to sign loan agreement with the Azerbaijani government on the first tranche of the new multitranche financing (MFF) for road construction in the country (Second Road Network Development Investment Program) in early 2013, the head of the bank in the country Ollie Noroyono told Trend on Thursday.
ADB Board of Directors approved a Second Road Network Development Investment Program in October 2012 and the first tranche in the frame of it in the amount of $250 million to build a 30-kilometer section of road Masalli-Jalilabad, which, in its turn, is part of Masalli-Shorsulu.
Total project cost is $312 million, 62 million of which is a share of Azerbaijani government participation in the project.
"The project is in the government now, the internal procedures are going on," Noroyono said.
Second multitranche package for the construction of roads is approved in the amount of $500 million, as well as the first MFF. The program involves the construction of Masalli-Shorsulu highway with length of 63 kilometers, consisting of two parts: Masalli-Jalilabad (30 kilometers) and Jalilabad-Shorsulu (33 kilometers). Cost of the project is $625 million, $125 million of which will be provided by the government.
Part of Alat-Astara road (Alat-Masalli) with length of 112 kilometers is being constructed through the loans from the World Bank and the Government of Azerbaijan. The rest of the road (Masalli-Astara) is constructed by the Asian Development Bank.
Some $400 million has already been allocated for the construction of road Masalli-Astara from the first ADB multitranche package for road construction in the amount of $500 million.
The ADB was established in 1966 and has 67 members. The headquarters of the bank is located in the capital of the Philippines, Manila. Azerbaijan became a member of the Asian Development Bank on December 22, 1999. The country's participation share in the bank's capital is 0.5 percent.
Japan and the US (31.2 per cent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent) are the ADB leading shareholders.
