The Azerbaijani government and the Asian Development Bank (ADB) signed credit and guarantee agreements worth $ 250 million, which is the first tranche of the project to modernize electricity grids, worth $ 1 billion.
The Guarantee Agreement was signed by the Minister of Finance Samir Sharifov and the ADB Director for Azerbaijan Nariman Mannapbekov. The loan agreement was signed by the Chairman of Azerishig Balababa Rzayev and Mr. Mannapbekov.
The project was approved by the ADB Board of Directors on July 12, 2016. ADB will finance 3/4 of the electric grids modernization project - $ 750 million in funds provided for 25 years with 5-year grace period at a rate of LIBOR + 0.6%.
The remaining $ 250 million includes commitments of the Azerbaijani government.
The first tranche is provided for procurement of goods, works and services.
The project covers 7 regional electricity distribution networks (Aran, Baku, South, West, Central Aran, North and North-West), and $ 1.4 million consumers.
Work on the first tranche should be completed before 31 December 2018. The final disbursement date is scheduled for June 30, 2019. In general, the project will be funded in three tranches of $ 250 million. And their development should be completed before the end of 2022.
At the project Azerishig will lay 1,300 kilometers of distribution lines of power transmission and 3,900 km of power transmission lines and install substations, transformers and 108.4 thousand smart meters.
During the period of 1999-2016, ADB has allocated to Azerbaijan $ 2, 321 billion as loans for the implementation of 59 projects. -0--
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