Roads Reconstruction and Upgrading Project in Azerbaijan

Objective

"...to contribute to the upgrading of the key regional and international road connections to facilitate economic growth."-CAREC website

Description

M2/E60 highway is part of the TRACECA corridor and a key international trade route for Azerbaijan. This highway is part of the Government’s priority programme to upgrade the national road network to support the economic growth of the regions outside Baku and increase international trade, connectivity and integration into the global economy.

History

The Project, originally approved by the Bank’s Board of Directors in December 2011, consists of three loan tranches, USD 250 million each. Tranche 1 in the amount of USD 250 million was approved and committed upon signing of the loan agreement in December 2011 for the rehabilitation of the R18 Mingachevir - Bahramtapa road section. In December 2015, the GoAz requested the Bank to commit the remainder of the loan and reallocate all of the funds under Tranches 2 and 3 for the completion of the dualisation of 130km of road on the M2 highway between Ganja, the second largest city in Azerbaijan, and the Georgian border. This request is subject to formal approval by EBRD's management and Board of Directors, expected in October or November 2016.

Finance