Azerbaijan announced expression of interest to first construction contract on EBRD credit
Baku, Fineko/abc.az. The tender process of contractor selection has started under the agreements endorsed by Azerbaijan Cabinet Ministers’ Decree #436s from 28 December 2011 and signed on 15 December 2011 - a credit agreement with the European Bank for Reconstruction & Development (EBRD) on the road repair & restoration project and the draft agreement between the EBRD and Azeryolservis OJSC under the Ministry of Transport of Azerbaijan.
According to the report of project implementation group, an interest expression has been announced for the contract for assistance to holding tender procedures on selection of builders and contractors for renewal of R-18 Mingachevir-Bahramtapa road highway with 156 km length. The group attracts companies for conducting inspection of engineering and other documentation, conduction of topographic, hydrologic, ecologic and common projecting, maintenance of feasibility study, renewal of information bases, conduction of environmental impact assessment, preparation of pre-qualification documents for tenders. Work should start from July 2012. The claimants should have at least 10 year practical experience. Expression of interest is accepted till 5 pm on 25 April.
According to the agreements, a total of $731.8 million from the EBRD loan will be directed to finance the repair work ($240 million on the first tranche and by $245.9 million on the second and third tranches). Consultants on preparation and supervision over project implementation will receive $10.4 million ($7.4 million on the first tranche and by $1.5 million on the second and third tranches). Monitoring of the implementation will cost $0.3 million ($0.1 million on each tranche). Bank’s commission will amount to $7.5 million (by $2.5 million on tranche). Interest rate will be 0.5% per annum.
Under Cabinets Decree, the Ministries of Economic Development (MED), of Finance, of Justice and of Transport are to take steps for timely implementation of the two agreements. Besides, the MED and Transport Ministry are tasked to ensure state guarantees for the project. Azerbaijans Foreign Affairs Ministry should notify the EBRD of completion internal state procedures of agreements approval. Control over the execution of the Decree was entrusted to the MED.
The agreements were signed by Transport Minister of Azerbaijan Ziya Mammadov, Finance Minister Samir Sharifov and European Bank for Reconstruction and Development (EBRD) General Director for Turkey, East Europe, Caucasus and Central Asia Olivier Decamp.
Under the agreements, the EBRD will provide $750 million to Azerbaijan in three equal tranches ($250 million each). The first tranche is directed for reconstruction of Mingachevir-Bahramtapa road - repair of 156 km road in compliance with modern requirements, accomplishment of transport artery for 500,000 rural population as well as provision of entrance to international highway leading to border between Azerbaijan and Georgia.
Total cost of allocated credit program is $900 million.
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