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World Bank allocates $175 million to Azerbaijan

28 July 2009 12:24 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. The World Bank and the Government of Azerbaijan have today signed an agreement on Additional Financing for Second Highway Project for Azerbaijan, said the WB Office in Baku.

For the Additional Financing for Second Highway Project, a US$62 million IDA credit has a maturity period of 20 years with a 10 year grace period, and a US$113 million IBRD loan has a maturity term of 20 years with a 4 year grace period.

This financing will continue the Bankâ€™s road program in the country to enable it to become a regional transit point and promote local development. Specifically, the financing will support rehabilitation of the Hajigabul â€“ Bahramtepe road connecting an important agricultural region in the South West of Azerbaijanâ€“home to significant portion of the countryâ€™s populationâ€“with the main urban centers. In addition to rehabilitating 116 km of highway, the project will support the improvement of about 200 km of local roads connecting the highway with nearby villages.