ECONOMY
ASIAN DEVELOPMENT BANK TO ISOLATE $600 MILLION IN LOAN TO AZERBAIJAN
Baku, September 24 (AZERTAC). The Asian Development Bank (ADB) will extend up to $600 million in loans to Azerbaijan for water and sanitation improvements in towns, ADB Baku office reported.
The Board of Directors today approved a multitranche financing facility that will release loans periodically to support the Government of Azerbaijan’s Water Supply and Sanitation Investment Program. The Government has earmarked up to $200 million for the 8-year investment program, with ADB financing up to $600 million from its ordinary capital resources. In the first tranche, ADB will provide a $75 million loan.
The investment program will improve the quality and coverage of water and sanitation in secondary towns and semi-urban areas outside the capital Baku. The Government has earmarked up to $200 million for the investment program, with ADB financing up to $600 million from its ordinary capital resources.
In the first tranche, ADB will provide a $75 million in loan for 24 years.
ADB’s first tranche loan of $75 million has a 24-year term with a 4-year grace period and interest set according to its LIBOR-based lending facility. The Government of Azerbaijan is providing $25 million. The Azersu Joint Stock Company will act as the executing agency for all project activities except those in Nakhchivan Autonomous Republic, where the State Amelioration and Water Management Agency will be the executing agency