Azerbaijan refuses one more loan of ADB

Transfer of 2nd and 3rd tranches of $750 million loan allocated by the Asian Development Bank (ADB) to Azerishig OJSC as part of an Investment Program for the reconstruction of electric power distribution network has been postponed.

Report informs that Azerbaijan refused that loan.

Head of Press Service of the Finance Ministry Mais Piriyev told Report that such a step was taken in accordance with the new external borrowing strategy: “Transfer of next tranches is not expected in this period.”

According to a Memorandum of Understanding (MoU) signed between Azerishig OJSC and ADB in 2015, a $750 million loan was planned to be attracted as part of the Investment Program for the reconstruction of electric power distribution network. Upon this MoU, Azerbaijan assumed a guarantee of $250 million.

$250 million, which was transferred in the first tranche, was spent on the funding of the reconstruction of the electric power distribution network.

According to the agreement, the second and the third tranches had to be transferred in 2018 and 2020.