Baku, Fineko/abc.az. The Asian Development Bank (ADB) applies new methods and practice of credit projects in co-operation with Azerbaijan.

The Baku-based ADB representative office reports that Bank’s practice has improved and that is why new mechanisms were applied when preparing a credit facility on Power Transmission Enhancement Project in Azerbaijan.

“As a result, project preparing took around six months versus one or two years as it could take earlier. We’ve submitted the draft credit agreement to Azerbaijan and are ready to sign it in early September,” the ADB office said.

The Cabinet Ministers schedules readiness of a credit agreement for the project endorsed by ADB for September and its signing for October of the year,” a Cabinet source said.

The Bank estimated the project cost at $240 million, $160 out of which it is ready to disburse and left $80 million to be undertaken by Azerenerji OJSC.

The purpose of the project is strengthening potential of power transmission and liquidation of regional disbalance in development, improvement of power-supply quality. Under the project it is planned to construct a 220 KV transmission line (2 branches) from Mingechevir hydroelectric power station up Absheron to substation, to construct 220/110 KV substation combined with 110 KV transmission line.

On June 4 the technical assistance to project ended, on what the bank has allocated a $150,000 grant. The consultant helped to make the detailed project design, to prepare the building documentation, to carry out supervision above construction and to manage contracts, to assist in institutionalization in the sector.

Azerbaijan and the Bank are expected to prepare and sign the credit agreement by the end of 2008.

The World Bank, Islamic Development Bank and KfW have been already involved in assistance of modernization of a transferring infrastructure in the country. At the same time the problem is so sharp, that in January (during phenomenal frosts for Azerbaijan) one of plants of the Azerbaijan thermal station has been stopped as there was no technical opportunity to supply power from it in Baku although the capital of the country was in power deficiency.

30.07.2008 09:58