The Islamic Development Bank and the Azerbaijani government have signed a loan agreement for protection from floods, modernization and expansion of irrigated areas in the Nakhchyvan Autonomous Republic, Azerbaijani representative to the bank Tamerlane Tagiyev said today, Trend reports.
The bank approved financing worth $64.83 million in September 2011.
A mission supervised by regional director of the IDB, Khisham Maruf, visited Azerbaijan last week. He signed the document with head of the Azerbaijani Cabinet Alovsat Bakhshyyev.
The State Committee for Irrigation and Water Resources of Nakhchyvan will be the executive agency for the deal. The project will receive $80 million as loan for 4 years.
The credit will consist of 2 parts: $9.5 million on beneficial conditions for 19 years with a rate of 2.6%, $55.33 million on commercial conditions for 14 years with a swop rate.
The project includes enforcement of the Araz River banks, construction of auxiliary canals and other facilities.
