ADB Provides $750 Million USD for Reliability of Azerbaijan’s Energy Industry

The Asian Development Bank (ADB) will facilitate uninterrupted power supply to the regions of Azerbaijan. It will be arranged through three tranches of credit totaling $ 750 million.

According to today's report on the ADB official website, with Baku there are no problems, but on the periphery there are shortages and the situation is unstable because of outdated equipment. The new project will help not only small towns and many settlements in rural areas, but also local entrepreneurs and households, and will help reduce income inequality between urban and rural population - the General Director of the Central and Western Asia Department, Sean O'Sullivan reported.

Recall that the memorandum of understanding in the framework of the investment program in the amount of $ 1 billion ($ 250 million - the share of the local government) was signed in May 2015. According to the document, reconstruction and modernization of the energy system is planned. The investment will be used to upgrade the distribution network and substations, improve services, install digital meters, as well as strengthen the personnel potential.

The first funds will come from the second half of 2016 to December 31, 2018. The third tranche will be repaid at the end of 2022.

ADB has been acting since 1966. Its members are 67 countries, including Azerbaijan from 22 December 1999, with the share of 0.5% in the authorized capital.

As of January 1 this year, the government received $ 2,321,620,000 from ADB for 59 projects, plus $ 22 million for 32 projects within the framework of technical assistance. --17D-

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