To finance procurement of new air navigation equipment, reconstruction of the upper central part of the existing unfinished international passenger terminal, and training and consulting services for project implementation.
The project aims to:
- improve aviation safety and efficiency;
- meet future increased traffic demand and help increase the hard currency earnings; and
- assist the borrower in its institutional transformation into a commercially oriented company.
The project will help indirectly to promote business activities in Azerbaijan by providing safe, reliable and adequate air transport and to meet expected traffic growth in demand, especially as a result of oil industry development. It will also assist AZAL in its transformation into a commercially viable entity.
The state concern for civil aviation, Azerbaijan Airlines (AZAL), which is responsible for the airline, the airport and air navigation services. It has 11 subsidiary companies, including the newly established air navigation services company (AZANS or Azeraeronavigatsiya).
Loan of US$ 13.7 million (ECU 10.9 million) with a government guarantee.
US$ 15.7 million (ECU 13.8 million).
This project was screened B/0, requiring an Environmental Analysis. That analysis was reviewed and found acceptable to the Bank. The environmental impact associated with upgrading the Azerbaijan air navigation system is not considered to be significant. It is limited to the practices employed in constructing and improving the control tower and technical block. This includes issues such as noise, dust and worker health and safety. The design and construction plans are in conformity with the required Azerbaijan environmental permits, all of which have been obtained and copies sent to the Bank. Monitoring requirements on the project include annual reports on environmental and worker health and safety matters.
- ECU 300,000 for capital investment programme; organisational restructuring; business plan, phased project implementation plan and all technical specifications and schematic drawings (completed).
- ECU 225,000 for procurement arrangements (planning, notification, the preparation of tender documents, tender evaluations and contract awarding and establishing a Project Implementation Unit. The funds will be repaid by the borrower from the proceeds of the proposed loan. (Consultant selected).
- ECU 300,000 for the development of financial management information system of AZANS. (Consultant selected).
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