WB loan to finance road upgrade project in Azerbaijan
The World Bank’s board of directors on Tuesday approved a $241.6
million loan to Azerbaijan to finance a major infrastructure
project.
The allocation, provided under the Third Highway Project, consists of a $70 million equivalent International Development Association (IDA) credit and a $171.6 million International Reconstruction and Development Bank (IBRD) loan. The project will improve safety and efficiency of the Baku–Shamakhi road by upgrading it from two to four lanes, and will strengthen management of the nascent motorway network, according to the WB office in Baku.
The project is estimated at a total of $356.15m, with the remaining part to be allocated by the Azerbaijani government. The IDA loan will be allocated for 20 years, with a 10-year grace period, while the IBRD credit is to be repaid over 17 years, with a four-year grace period.
The project will help provide better transport services in mountainous central and northern regions of Azerbaijan, which have considerable potential for tourism and industrial production. This section of the road also constitutes part of the shortest route to the Georgian border, and will connect metropolitan Baku area with major agricultural producers in the west of Azerbaijan.
"We are pleased that the project is going to put Shamakhi and its region just about an hour away from Baku," said Jacques Bure, leader of the World Bank team that prepared the project. Bure believes "this will be a real upgrade and a boost to the region and the country at large."
With this project, the World Bank starts the third phase of its assistance to Azerbaijan’s road sector. This phase will focus on Azerbaijan’s motorway network and transport corridors and on secondary, local roads as part of the regional development strategy.
The Third Highway Project has three components: upgrading a 100 km section of the existing two lane Baku-Shamakhi road into a four-lane motorway and related road safety activities; supporting a study to explore options for management and financing, and efficient allocation of resources for Azerbaijan’s motorways; financing consultant services, equipment and technical assistance.
Azerbaijan joined the World Bank in 1992. Since then, commitments to the country have reached about $2.16 billion for 42 projects.*
The allocation, provided under the Third Highway Project, consists of a $70 million equivalent International Development Association (IDA) credit and a $171.6 million International Reconstruction and Development Bank (IBRD) loan. The project will improve safety and efficiency of the Baku–Shamakhi road by upgrading it from two to four lanes, and will strengthen management of the nascent motorway network, according to the WB office in Baku.
The project is estimated at a total of $356.15m, with the remaining part to be allocated by the Azerbaijani government. The IDA loan will be allocated for 20 years, with a 10-year grace period, while the IBRD credit is to be repaid over 17 years, with a four-year grace period.
The project will help provide better transport services in mountainous central and northern regions of Azerbaijan, which have considerable potential for tourism and industrial production. This section of the road also constitutes part of the shortest route to the Georgian border, and will connect metropolitan Baku area with major agricultural producers in the west of Azerbaijan.
"We are pleased that the project is going to put Shamakhi and its region just about an hour away from Baku," said Jacques Bure, leader of the World Bank team that prepared the project. Bure believes "this will be a real upgrade and a boost to the region and the country at large."
With this project, the World Bank starts the third phase of its assistance to Azerbaijan’s road sector. This phase will focus on Azerbaijan’s motorway network and transport corridors and on secondary, local roads as part of the regional development strategy.
The Third Highway Project has three components: upgrading a 100 km section of the existing two lane Baku-Shamakhi road into a four-lane motorway and related road safety activities; supporting a study to explore options for management and financing, and efficient allocation of resources for Azerbaijan’s motorways; financing consultant services, equipment and technical assistance.
Azerbaijan joined the World Bank in 1992. Since then, commitments to the country have reached about $2.16 billion for 42 projects.*
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