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KfW Bank allocates new large-scale loan to Azerbaijan

20 December 2012 13:53 (UTC +04:00)

According to agreements, KfW Bank will allocate 105.5 mln euros to Azerbaijani government. 102.5 mln of it will be given as loan, 3 mln – as grant. 102 mln euros of the funds will be given to Azersu for implementation of water supply and sewage projects, the rest 3.6 mln euros will be allocated to the State Committee on Property Issues for realization of cadastre projects.

Deputy PM of Azerbaijan Abid Sharifov said that the government conducts successful collaboration with the international financial institutions, as well as KfW Bank in implementation of infrastructure projects. To him, Azerbaijani government cooperates with German Development Bank since 1994, and during this period the bank rendered financial support at amount of 380 mln euros to different projects. Reminding 44% rise in this year’s trade turnover between Azerbaijan and Germany, the Deputy PM noted that this figure shows dynamical development of bilateral cooperation.

KfW’s Director General for Europe and Asia Roland Silller appreciated bank’s cooperation with Azerbaijani government and noted that bank has participated in support of infrastructure and private sector closely and will continue this mission: “Water supply and reconstruction of sewerage in Ganja and Shaki to be realized by financial assistance of German bank will improve the usage of near 500,000 Azerbaijani citizen from drinking water supply and sewerage services”.

Note that the agreements signed on “Open Utility Infrastructure Program II” cover financing of 2nd and 3rd stages of projects in Shaki and Ganja. 43 mln Euros of 102 mln Euros allocate for this purpose, will be spent to water supply and sewerage in Ganja and Shaki, 57 mln Euros – waste water treatment in both cities. Remaining 2 mln Euros will be spent to management of Water departments in Ganja and Shaki for two years.

The first stage of “Open Utility Infrastructure Program II” project includes restoration of water source, construction of main pipelines and new water reservoirs in Ganja and Shaki, reconstruction of water and sewerage network in Ganja.