Road & Traffic - EIB willing to finance transport, energy projects in Azerbaijan

EIB willing to finance transport, energy projects in Azerbaijan


European Investment Bank (EIB) is interested to finance projects in the fields of transport, energy and environment in Azerbaijan, a source in the country’s government told Trend.

"Currently, we hold initial discussions with the EIB on a number of directions," the source said. "However, it is worth noting that the bank has its own specifics of work. For example, when we work with the World Bank (WB), we usually repay the cost of taxes, and the bank itself provides the remaining funds."

"In contrast to the WB, the EIB doesn’t fully finance projects, but it is involved in joint lending," the source noted. "While negotiating with the bank, we need to consider a number of factors concerning the amount of money the Azerbaijani government itself will give, the involvement of a third party and other issues."

As for the estimated cost of the projects, which are being discussed with the bank, the source noted that the volume of these projects hasn’t been defined yet.

"When working with any bank, in the first place, it is necessary to determine the direction of the project and prepare a feasibility study," the source in the Azerbaijani government added. "The volume of investments is determined after these two stages. At the moment, we are discussing the direction of projects and the preparation of the feasibility study with the EIB."