Azerbaijan signs credit agreement with WB
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By Fatma Babayeva
Azeravtoyol JSC, engaged in construction and upgrade of the road infrastructure and the World Bank signed an agreement allocating a $140 million loan to Azerbaijan for the Additional Financing for the Third Highway Project.
The agreement was unedr signed by Azeravtoyol Chairman Saleh Mammadov and head of WB office in Baku Larisa Leshchenko on April 5.
The additional financing will allow to complete upgrading of the Baku – Shamakhi road sections by expanding them from two to four lanes, and support strengthening Azerbaijan’s nascent motorway management and maintenance program.
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.
The total amount of the additional financing equals to $186.6 million, $46.6 million out of which will be paid by the Azerbaijani Government.
Some 40 percent of the funds will be spent on the restructurisation and privatization of the state-owned enterprises in this field.
Total investments by the WB in the road projects of Azerbaijan (1st, 2nd, 3rd road projects) amounted to$1 billion.
The work on the reconstruction of Baku-Shamakhi road is carried out within the framework of Third Highway Project.
Third Highway Project,approved in 2010, costs $356.15 million, and $241.6 million out of the figure is provided by the WB.
This project includes two directions. The first direction is related to the reconstruction of the highway network of Azerbaijan and transit corridors, the second to the local roads reconstructed within the framework of the regional development strategy. The project is expected to be completed in September 2016.
Azerbaijan is a WB member since 1992.
The WB has allocated loans worth 3, 785 billion to Azerbaijan till February 2016. These funds were used to finance 60 projects.
Azerbaijan has used $2,764 billion or 73 percent of the total loans allocated by the WB till the beginning of this year. In addition, the WB has allocated 45 grants to Azerbaijan with total amount of $ 41.586 million between 1995-2014.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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