Loan agreements were signed under “Open Municipal Infrastructure Program II”

 

    On December 20, 5 agreements were signed between the government of Azerbaijan and KfW Bank of Germany (Germany Development Bank) in the Cabinet of Ministers. The agreements were signed by Roland Schiller, KfW's Director General for Europe and Asia, the Minister of Finance of the Republic of Azerbaijan Mr. Samir Sharifov chairman of “Azersu” OJSC Gorkhmaz Huseynov, Chairman of State Property Issues Committee Karam Hasanov. According to the agreements The German Government will allocate a loan in amount of EUR 105,5mln including EUR102,5 mln as a loan, EUR 3mln as a grant. According to the agreements signed EUR 102mln will be directed to implementation of water supply and sewerage systems projects carried out by “Azersu” OJSC, EUR 3mln Euros will be allocated to the State Property Issues Committee for the implementation of the cadastral projects.

   In the signing ceremony Deputy Prime Minister Abid Sharifov emphasized that the Azerbaijani Government is in close cooperation with international financial institutions, as well as with Germany Development Bank on implementation of infrastructure projects. He noted that the Azerbaijani Government is in collaboration since 1994 with the German Development Bank and 380mln fund have been allocated for different projects by the bank during this time. Recalling that the trade turnover between the Azerbaijani Government and Germany rose 44% in January-October of 2012Deputy Prime Minister Abid Sherifov emphasized that this indicator shows dynamic development of bilateral cooperation.

   KfW's Director General for Europe and Asia Roland Schiller spoke of the history of cooperation with the Azerbaijani Government, expressed deep interest in expansion of these ties: “reconstruction project on water supply and sewerage systems in Ganja and Shaki that financed by German Bank will develop water supply and sewerage systems of 500 thousand people.

   Note that the agreements signed on “Open Municipal Infrastructure Program II” intend to finance the second and third phases of the project that carried out in Ganja and Shaki. With this purpose EUR 43mln of EUR 102mln (EUR 100mln loan, EUR 2mln grant) allocated by German Bank will be directed to reconstruction of water supply systems, EUR 57mln to construction of sewerage systems in Ganja and Shaki. EUR 2mln will be used to management of Ganja and Shaki Sukanal Departments.

   At the first phase of “Open Municipal Infrastructure Program II” project reconstruction of water source, construction of transmission and new reservoirs in Shaki, reconstruction of water source, construction of transmission and new reservoirs, reconstruction of a part of water supply and sewerage systems in Ganja is intended. The works on the first phase completed in Shaki, the great part of works on the first phase is about completing.