WB unveils cost of road improvement project in Azerbaijan

As of mid-December 2020, the total project loan disbursements stand at about USD311.3 million (99.6% of the total current Bank commitments including additional financing), Report states, citing the World Bank report.

The Project is on track to meet its development objectives. Implementation of all key project activities has been timely completed, except the subcomponent on the construction of road maintenance offices and depots for the three motorway maintenance units.

The Project is scheduled to close on March 31, 2021.

The Project consists of three components.

Component 1: Motorway Improvement, including upgrading a 94 km section of M4 Baku-Shamakhi and a 48 km section of M3 Yenikend-Shorsulu roads into a four-lane motorway.:(Cost $369.60 M)

Component 2: Support for Motorway Maintenance Reform (management and financing Azerbaijan Motorways; institutional development of the ARS):(Cost $19.35 M)

Component 3: Project Management and Institutional Support to ARS, including technical assistance and additional financing costs for project implementation.:(Cost $5.32 M)

Previously, the cost of the first component was estimated at 448.1 million US dollars, the second component – 25 million US dollars, and the third-4 million US dollars.

Accordingly, the Project's implementation will cost 394.27 million US dollars against the previously envisaged cost of 477.1 million US dollars.

As reported by Report, about the US $ 65 million saved under the Project will be used to implement a new road project called Regional connectivity and development, which provides for the reconstruction of the Salyan-Bilasuvar road length of 54 km. The development of the Project will be completed by April 2021.

Notably, in May 2010, the WB Board of Directors approved the provision of a loan to Azerbaijan of USD 241.6 million to implement the third road improvement project. The loan was formed in two parts. In particular, 171.6 million US dollars was allocated under the terms of the International Bank for Reconstruction and Development (IBRD) for 17 years with a 4-year grace period. Another US $ 70 million was provided under the International Development Association (IDA) terms for 20 years with a 10-year grace period.