Azernews.Az

By Nigar Orujova

The Asian Development Bank will conduct a study to examine the possibility of introducing toll roads in Azerbaijan, ADB Resident Representative Olly Norojono said Thursday, Trend news agency reported.

"This work is carried out in the frame of the first tranche of the ADB's multitranche financing facility (MFF) for road construction in Azerbaijan. Consultants have already been selected and will soon start work," Norojono told a press conference, adding that the study will be completed by the end of next year.

According to Norojono, the work will be done in two stages. First, financial aspects of the implementation of toll roads and relevant legislative matters will be studied. Afterwards, the ADB will discuss the results with the government of Azerbaijan.

According to Azeryolservis company operating under Azerbaijan's Transport Ministry, a consultant is to assess the road network and its economic importance in the region, traffic, road surface, and determine the needs to improve the country's roads for the next 10 years.

A consultant must determine the roads that are important from the economic point of view, while paying special attention to the calculation of income to be generated by toll roads. The roads with a high rate of return must be taken into account.

The ADB expects to sign a loan agreement with the Azerbaijani government on the first tranche of MFF for road construction in the country (Second Road Network Development Investment Program) in early 2013, Norojono said.

The ADB board of directors approved the investment program in October 2012 and the first tranche in the amount of $250 million for road construction in southern Azerbaijan. The funds were allocated to finance building a 30-kilometer section of the Masalli-Jalilabad road, which is part of Masalli-Shorsulu highway.

Total project cost is $312 million, $62 million of which is a share of the Azerbaijani government.

The 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 built on account of ADB funds.

Some $455.4 million from the first ADB multitranche package for the construction of Masalli-Astara road totaling $500 million has already been allocated.

The ADB, based in the capital of the Philippines, Manila, was established in 1966 and has 67 members. Azerbaijan joined the ADB in December 1999. The country's share in the bank's capital is 0.5 percent.

Since joining the ADB, Azerbaijan has received lending totaling $1.19 billion for transport (42.73%), water supply and sanitation (34.11%), energy (15.75%), finance (5.56%), and agriculture (1.85%).

Japan and the U.S. (31.2 per cent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent) are the ADB leading shareholders.