Finance

Home page

Finance

Asian Development Bank, Azerbaijan to sign two loan agreements this year

21 November 2008 16:15 (UTC +04:00)

Baku. Nicat Mustafayev â€“ APA-Economics. Asian Development Bank will extend $68.5 million to Azerbaijan in technical assistance, said Samir Veliyev, Officer of Azerbaijanâ€™s Ministry of Economic Development.
Xiaoyu Zhao, Vice-President of ADB, added that the bank is not interested to lend loans to non-bank lending institutions.
He added that non-bank institutions may benefit from ADB funding through participation in projects in the public sector.
He added that two agreements will be signed with the Government of Azerbaijan in December.
One loan agreement for the Power Transmission Enhancement Project and another agreement on additional loan for the Ganja Bypass Route are due to be signed.
The ADB Board of Directors approved a $160 million loan for the Power Transmission Enhancement Project that will help build a double-circuit 220 kilovolt transmission line and associated substation facilities, replacing two existing lines which have been in use for about 60 years.
The upgrade will remove transmission choke points, lower system losses, and provide a more stable power supply, especially in the key Azeri industrial hub, near the capital city of Baku.
The Board of Directors approved a $55.4 million additional loan for Ganja Bypass Route, which is generally used by large trucks for long distance travel, which are not permitted to travel through Ganja, one of the most industrialized cities in Azerbaijan.
The total cost of the project is $73.9 million, of which $18.5 million will be provided by the Government of Azerbaijan.