Azernews.Az

By Nigar Abbasova

The Asian Development Bank (ADB) and the government of Azerbaijan are currently discussing the distribution of superfluous volume of funds provided by the financial institute for the implementation of certain road projects in the country.

The Baku Office of the Bank told Trend that some $30 million in tote from the five loans approved by the Bank remained unused. The sides consider spending of the means for the financing of a new project, while the decision on the issue is expected to be taken soon.

Cost cutting appeared due to the changes in the currency market, namely the change of the manat rate against the USD.

Azerbaijan became a member of ADB in 1999 while the country’s share in the bank’s capital amounts to 0.5 percent.

Country Partnership Strategy of the bank for Azerbaijan, which covers 2014-2018 aims to diversify the economy, foster new economic opportunities, and reduce disparities between urban and rural areas, while a huge emphasis is placed on the development of the transport sector in the country.

ADB has already completed the funding within two investment programs for reconstruction of roads in Azerbaijan.

The first multi-tranche package worth $500 million was approved in 2007. The funds were directed to the construction of Masalli-Astara highway, as well as the reconstruction and expanding of the Ganja bypass road.

The second multi-tranche package was approved in November 2012 in the amount of $500 million. The program envisaged the construction of Masalli-Shorsulu highway (63 kilometers), consisting of two parts Masalli-Jalilabad (32.2 kilometers) and Jalilabad-Shorsulu (over 30 kilometers).

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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