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.