ADB to approve next loan for Azerbaijan's road project soon

24 July 2014 15:56 (UTC+04:00)

By Aynur Jafarova

The Asian Development Bank (ADB) is expected to approve the next loan for a road construction project in Azerbaijan in August 2014, ADB's Baku office said on July 22.

"The bank's board of directors will approve the next loan worth $250 million for the construction of the Salyan-Jalilabad highway," ADB told Trend Agency.

In February 2014, ADB approved a business plan for the bank's operations in Azerbaijan in 2014-2016, which envisaged the allocation of a loan worth $150 million to the implementation of the project on construction of the Salyan-Jalilabad highway with a total cost of $200 million for ADB.

ADB allocates loans for roads construction to Azerbaijan in a form of multi-tranche package.

The first multi-tranche package of ADB worth $250 million aimed to construct a four-lane Masalli-Jalilabad road. The total cost of the project amounted to $312 million, $62 million of which was provided by the Azerbaijani government.

The second multi-tranche package of ADB worth $500 million aimed to construct the Masalli-Shorsulu highway to a length of 63 kilometers, consisting of two parts: Masalli-Jalilabad (32.2 kilometers) and Jalilabad-Shorsulu (over 30 kilometers).

The total cost of the project is $625 million, $125 million of which will be provided by the country's government.

The ADB plans to issue a third tranche worth $100 million in 2016. The total cost of the project will be equal to $133 million, some $33 million of which will be financed by Azerbaijan.

Established in 1966, the ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. The bank is owned by 67 members, including 48 from the region. In 2012, ADB's assistance totaled $21.6 billion, including co-financing $8.3 billion.

Azerbaijan's share in the bank's capital is 0.5 percent.