BILLS ON FINANCING BAKU CIRCULAR ROUTE, UJAR-YEVLAKH ROAD

Baku, IAA "Trend" April 17 corr. G.Azizoglu

Milli Majlis [parliament] confirmed a credit agreement with the Kuwaiti Fund of Arab Economic Development (KFAED), which grants Azerbaijan with 4.5m Kuwaiti dinars for the implementation of the Baku Circular Route. Trend reports

The loan is allocated for 20 years with interests 2.5% per annum. 75.000 Kuwaiti dinars were directed to financing the feasibility study of the project.

The agreement was signed on June 20, 2003, and some changes were injected to it in February, 2004. The Transport Ministry has been charged in the implementation of the project due to cancellation of Azeravtoyol state company, which the document refers as the executive body. The public budget will cover annual funds needed for exploitation of roads.

The parliament also confirmed a credit OPIC on financing the Ujar-Yevlakh road. OPIC will allocate funds for the construction of 53km section of the Great Silk Route, connecting Azerbaijan with Georgia, and additional five bridges at the $31m credit. The credit will be allocated out of three sources: $22m - Islamic Bank for Development, $3m - the Azerbaijani government, $6m - OPIC. The credit is presented for 20 years with interests rates 2.5%, and is to be repaid since 2009.