Agreement between ADB and Azersu JSC became effective

According to APA, the credit project agreement was signed on November last year. Total cost of the two projects providing rehabilitation of the water and sewerage systems of Aghdash, Goychay and Nakhchivan cities is $39.9 million.

The credits will fund establishment of new public utilities enterprises to implement long-term efficient operations, as well as institutional reforms and social potential.

ADB plans to render $0.5 million of technical aid under the credit as well.

$20 million of the credits granted by ADB is allocated from Bank's concessional reserves for 32 years with grace period of first 8 years.

Interest rates are 1% per annum during grace period and 1.5% per annum after completion of grace period.

$10 million the credits will be granted from mean resources of ADB for 25 years with grace period of 6 years. The rest of funds will be provided by the government of the country.

The project is planned to be completed in May, 2010.