BAKU, Azerbaijan, June 7. The European Bank for Reconstruction and Development (EBRD) has postponed the approval of a sovereign loan of up to $30 million for AzerEnergy OJSC by the Board of Directors until September 11, Trend reports.
According to the EBRD, he loan proceeds are intended to finance the purchase of autotransformer equipment for reinforcement work at four operational substations in Azerbaijan.
Previously, the consideration of the possibility of providing the loan was initially scheduled for May 1.
The borrower of the loan will be the Ministry of Finance of Azerbaijan, and the project implementation will be managed by AzerEnergy, the state enterprise responsible for the production and transmission of electricity in the country.
The total cost of the project is $30 million.
"The project will help enhance the flexibility of Azerbaijan's energy system, which is necessary for integrating renewable energy capacities. The successful implementation of the project will serve as an example for further projects aimed at strengthening the networks, which are important for integrating renewable energy sources in the country," the EBRD said.
The project will contribute to improving the quality of a sustainable transition by enabling the connection of planned renewable energy installations.
According to the bank's expectations, the project will bring indirect environmental benefits by upgrading the substation capacity to support the transition to the integration of renewable energy sources.
There is also a possibility of grant financing being provided within the framework of the project.
