Azerbaijan has signed a Memorandum of Intentions with the Asian Development Bank on $750 million MFF for the Azerlight national network operator.
The Asian Development Bank has signed today a Memorandum of Intentions on multitranche financing facility for Azerlight OJSC (Azərişıq), the national network operator of Azerbaijan.
The Memorandum was signed by Azerbaijan’s Minister of Finance, Samir Sharifov, Azerlight's Chairman Baba Rzayev and ADB Vice-President Wencai Zhang. In accordance with it, the parties confirm their intentions with regard to $750 million MFF intended for improvement of the power supply system and the power distribution network, abc.azreports.
Earlier, due to the urgent character of measures for upgrading the distribution networks, the government signed a protocol on reorientation of the Power Distribution Enhancement Program prepared by the Bank from Azerenergy OJSC to Azerlight OJSC. The first tranche within the program might be received already in 2015.
The bank proposed MMF with $750 million investments, which has been prepared since 2012. According to the Bank, in 2015-2016 the first tranche of this program should be approved. The budget of the first project of the program should make $332 million including $250 million covered by the ADB and $82 million provided by the government of Azerbaijan.
The program of urgent measures to be taken by Azerlight OJSC is estimated at the level of at least $1 billion.
