ADB approves loan for highway construction in Azerbaijan
By Aynur Jafarova
The Asian Development Bank's (ADB) Board of Directors has approved a loan worth $250 million for the construction of Azerbaijan's Masalli-Shorsulu highway.
"The total cost of project is $332 million, some $82 million of which would be provided by the Azerbaijani government," ADB said.
ADB allocates the loan as part of the second multi-tranche package aimed at constructing new roads in Azerbaijan.
ADB provides the loans for roads construction in Azerbaijan in the form of multi-tranche packages.
The first multi-tranche package of ADB worth $250 million was aimed to construct a four-lane Masalli-Jalilabad road. The total cost of the project amounted to $312 million, $62 million of which was provided by the Azerbaijani government.
The second multi-tranche package of ADB worth $500 million is aimed to construct the Masalli-Shorsulu highway to a length of 63 kilometers, consisting of two parts: Masalli-Jalilabad (32.2 kilometers) and Jalilabad-Shorsulu (over 30 kilometers).
The total cost of the project is $625 million, $125 million of which will be provided by the country's government.
The ADB plans to issue a third tranche worth $100 million in 2016. The total cost of the project will be equal to $133 million, some $33 million of which will be financed by Azerbaijan.
Established in 1966, ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. The bank is owned by 67 members, including 48 from the region. In 2012, ADB's assistance totaled $21.6 billion, including co-financing $8.3 billion.
Azerbaijan's share in the bank's capital is 0.5 percent.