Baku, August 25, AZERTAC
ADB's (the Asian Development Bank) loan fact-finding mission for the proposed Power Distribution Enhancement Investment Program has arrived in Azerbaijan.
Tianhua Luo, ADB's chief expert on energy issues is leading the mission that will be in Azerbaijan until September 7. The mission will discuss and confirm with the government and Azerishig OJSC on the project design, outputs, cost estimate, financing plan, procurement plan, implementation arrangement, safeguards, and other relevant documents.
The mission is a follow up of a Memorandum of Understanding for the investment program to rehabilitate and expand the country's power distribution network signed by ADB and the government on 5 May 2015 on the sidelines of ADB's Annual Meeting in Baku.
ADB will support the investment program through a 750 million USD multitranche financing facility with a 250 million USD loan earmarked for the first phase. The funds will be used to upgrade and expand the power distribution lines, substations, and customer service lines, and to replace the existing electric meter devices with digital electric meters. Capacity building support will also be given to Azerishig OJSC to enhance its operational and financial performance.
The Government of Azerbaijan will provide counterpart funds of 250 million USD for the financing facility.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2014, ADB assistance totaled 22.9 billion USD, including co-financing of 9.2 billion USD.
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