WB extends the period of loan for roads in Azerbaijan
The World Bank (WB) has postponed the closing date of the “Third Highway Project,” of which the Development Objective is to reconstruct the Baku-Shamakhi and Yenikend-Shorsulu roads, from late June 2020 to the end of March 2021.
Report informs, citing the WB, that the government has requested a restructuring of the project and extension of its closing date.
“During this time, $64 million, which is the unused part of the loan allocated for the “Third Highway Project,” will be spent on the new road project.”
It was also noted that a regional motor road, which is still unknown, will be reconstructed.
As of early mid-June 2020, the total project loan disbursements stand at about USD310.1 million, which made up 82.4% of the total Bank commitments. The project consists of three components.
Component 1: Motorway Improvement, including upgrading a 94 km section of M4 Baku-Shamakhi and 48 km section of M3 Yenikend-Shorsulu roads into a four-lane motorway.:(Cost $448.10 M)
Component 2: Support for Motorway Maintenance Reform (management and financing Azerbaijan Motorways; institutional development of the ARS):(Cost $25.00 M)
Component 3: Project Management and Institutional Support to ARS including technical assistance and financing additional costs for project implementation.:(Cost $4.00 M)
The World Bank approved a $241.6 million loan to finance a project on upgrading a significant highway in Azerbaijan in May 2010. The allocation consists of a $70 million credit from the International Development Association (IDA), a member of the World Bank group, and a $171.6 million International Reconstruction and Development Bank (IBRD) loan.
The IDA loan will be allocated for 20 years, with a 10-year grace period, while the IBRD credit is to be repaid over 17 years, with a four-year grace period.