“Azərenerji” Open Joint Stock Company and the International Bank for Reconstruction and Development, a member of the World Bank Group, have signed the “Loan Agreement for the Project on Expansion of Renewable Energy Sources in Azerbaijan” and the “Guarantee Agreement between the Republic of Azerbaijan and the International Bank for Reconstruction and Development for the Project on Expansion of Renewable Energy Sources in Azerbaijan,” APA-Economics reports.
The credit agreement worth 173.5 million USD was signed by Baba Rzayev, Chairman of the Board of “Azerenergy” OJSC, and Stephanie Stallmeister, World Bank Country Manager for Azerbaijan, while the guarantee agreement on behalf of the Azerbaijani Government was signed by Azerbaijan’s Minister of Finance, Sahil Babaye,v and Ms. Stallmeister.
According to the information, the attracted loan will ensure the strengthening of the energy transmission infrastructure to safely transfer the BOEM stations being constructed in Azerbaijan to the energy system.The loan is obtained for a 15-year term with a 5-year grace period, with repayment ending by the end of 2039. The Azerbaijani Government’s participation in the project (31.2 million USD) covers VAT and customs duties.
The project, with an implementation period of 4 years, aims to improve the operation of the “Azerenergy” JSC energy system and support the safe integration of renewable energy sources being built into the energy transmission network over the next 5 years. Within the project framework, the World Bank will finance the construction of four power transmission lines of 500 kV and 330 kV totaling 341 km in length, as well as the procurement of transformers and related equipment for the 500/330/10 kV Navahi Substation.
