Baku, Fineko/abc.az. The Azerbaijani government starts negotiations with the Asian Development Bank (ADB) on the occasion of expansion of ADB Watersupply & Sanitation Project in Secondary Cities (the $30 million agreement on the Project on November 29, 2005).

According to a government source, today Azersu OJSC (national watersupply operator) has been sent prescription on selection and submission to ADB the list of cities due to which the project could be expanded.

“The Bank will be offered three more cities. Preliminarily ADB has given its consent on that and already in August we expect to begin talks about an additional project with it,” the source said.

The valid project covers Agdash, Geychay, and Nakhchivan.

The project technical consultant is alliance AICO Consulting Ltd/European Consultants Organization.

Besides, the Japanese government has rendered $500,000 of technical assistance from the JBIC-run special fund in addition to the ADB loan.

The Project has $39.9 million budget, 75% of which is covered by the Bank’s loans of two types. Part of financing ($20 million) has been lent under the standard conditions the Asian Development Fund for 32-year period and with eight-year grace term. Loan interest rate per annum will be 1% during the grace period and 1.5% upon its expiry.

Besides, $10 million will be lent from the ADB ordinary capital resources for 25-year period with six-year grace period. Annual loan interest rate will be based on Libor, the ADB basic credit rate. The budget balance of $9.9 million will be covered by the Azerbaijani government.

Azersu OJSC (Azerbaijani state-governed water company) is the ADB performing agent in Agdash and Geychaym while the State Committee for Construction & Architecture in Nakhchivan. Completion of the project is scheduled for December 2010.

Creation of a new watersupply system in Agdash within the project was allocated $13 million and Geychay $8 million. Current water tariffs in Agdash make AZN 1.00 per family and AZN 1.00 for sewage services, but after project realization these tariffs are to double. In Geychay use of watersupply and sewage system costs AZN 4.00 a month.

28.07.2008 16:28