The issue on approval of the “Debt agreement between Azerbaijan Republic and Kuwait Fund for Arab Economic Development on the “Baku Encircling Highway” project” was discussed at the Milli Majlis sitting, April 16.

Reportedly, the document signed June 20, 2003 was amended in February 2004. According to the amendments, as State Company “Azerautoyol” specified in the document as executive organ is abolished, all commitments to realize the project were laid on the Ministry of Transport; and as the “Road Fund” is abolished, annual funds to exploit the road will be assigned from the state budget.

As to financial terms, Kuwait Fund for Arab Economic Development will allot 4 million 500 thousand Kuwaiti dinars. The credit is given for 20 years at 2,5% interest rate. To finance the feasibility study KWD 75 thousand was already lent.

At the end, the deputies approved the agreement draft.