Azerbaijan, Baku / Trend corr I. Khalilova / The negotiations between Azerbaijani Government and Asian Development Bank (ADB) regarding project of multitranche package on road projects and a $500mln credit agreement on the project of reconstruction of a sections of the Massali-Astara highway will be prolonged for two weeks, according to the Baku office of the ADB.
The talks were expected to end on 20 August, while the term turned out technically insufficient.
"The date of approval of a credit agreement on reconstruction of part of highway and multitranche package at the ADB Board of Directors depends from the conclusion of talks," the Government said. Originally scheduled for 28 August the negotiations have been postponed to the end of December.
The talks began in Baku on 7 August, on 9 August the experts left the country. They will be continued via correspondence and a protocol will be signed as a result.
Azerbaijani Finance Ministry's refusal to sign a final protocol caused prolongation of the negotiation process, according to the Government. The refusal is explained by the fact that Azerbaijan has no project financing practice within the framework of Multitranche Financing Facility (MFF) mechanism, therefore the Ministry has intentions to get the approval of the Cabinet of Ministers.
Within the framework of MFF the ADB will allocate $500mln to Azerbaijan. The funds are intended for financing of three road projects (including Masally-Astara).
One project has been agreed upon so far. The ADB will allot $200mln for its implementation. The negotiations on the credit agreement regarding reconstruction of a section of Massaly-Astara highway were held on 8 August. The remaining agreements will be coordinated at the next stage.