KfW loan to help solve power problem south
The problem of supplying Azerbaijan's southern regions with
electric power will be fully resolved soon with the aid of a new
international loan, Vice-Speaker Valeh Alasgarov says.
German state bank KfW will provide 30 million euros to the
state-owned energy producer Azerenergy to finance the construction
of the Mingachevir-Imishli electricity transmission line,
Alasgarov, who chairs the parliamentary commission on natural
resources, energy and ecology, said.
He said the legislature is expected to ratify the loan covenant
signed by KfW and the Finance Ministry in the coming days.
The document was inked in Baku late in June. The German bank will
allocate the funds for 12 years with the 0.75% annual interest
rate, with a two-year grace period. Interest payments by the
Azerbaijani government over the coming years will amount to 7.6
million euros.
An international tender will be announced to select a contractor to
lay a 150-km power line from Mingachevir to Imishli and construct
an auxiliary power plant under the project.
Alasgarov said that besides meeting domestic demand, the new
electricity line will facilitate Azerbaijan's exports of electric
power in the future. For instance, power could be exported to
neighboring Iran.
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