ADB allocates $250 mln for road construction in Azerbaijan
By Seymur Aliyev
The Asian Development Bank has approved the first tranche -- totaling $250 million -- for road construction in southern Azerbaijan in the framework of Multiannual Financial Framework (MFF), the ADB said Monday.
The funds will be spent to finance construction of 30 km Masalli-Jalilabad section, which is part of Masalli-Shorsulu highway. The spending will include incidental expenses on supporting the implementation of the program such as construction supervision, procurement, preparation and realization of the project.
Total cost of the project will constitute $312 mln, $62 mln of which falls to the Azerbaijani government.
Masalli-Shorsulu highway is part of the transport route dubbed "South Corridor", which is the main transportation artery of Azerbaijan. The South Corridor stretches from Alat settlement near the Azerbaijani capital Baku to Astara, near the border with Iran. The Alat-Astara highway is currently in deplorable condition and causes high transportation costs, lengthy goods delivery and traffic accidents. The road has a high roughness surface and needs capital reconstruction, the ADB said.
Previous research shows that improvement of the current situation requires creation of a new four-lane road to minimize problems that would arise if local residents were to be resettled as a result of an expansion of the existing road.
Improving the South Corridor to provide good road connections with Iran will allow to promote bilateral and transit trade, decrease the cost of transportation of agricultural products to Baku markets and reduce travel time and cost of transportation for all, particularly for the local population.
ADB earlier approved the second multitranche package for construction of roads in the amount of $500 mln. The program envisages construction of Masalli-Shorsulu highway, which is 63 kilometers long. The highway will consist of two parts: Masalli-Jalilabad (30km) and Jalilabad-Shorsulu (33 km). The cost of the project is $625 mln, $125 mln of which is the share of Azerbaijan.
Part of the Alat-Astara road, stretching a total of 112 kilometers, is already under construction at the expense of a World Bank loan allocated to Azerbaijan. The rest of the road is being constructed on account of ADB funds.