OREANDA-NEWS. April 05, 2010. The Azerbaijani government and the Islamic  Development Bank (IDB) continue consultations on loan for construction of a   rubbish recycling plant  nearby Baku.

The Azerbaijani sources informed Fineko/abc.az the opportunity of financing by the Bank of this  project  is cleared up in the course of the consultations.  “To this end, the parties hold correspondence between themselves and it is unknown when the IDB board of directors approve the project,” a source informed.

In accordance with coordinated with IDB  cooperation program for 2010-2012, the bank will issue loan for construction of the plant in 2011.

The loan will total ?100 million.

France’s CNIM S.A.  is a contractor of the construction and managing company of the plant. CNIM S.A signed the contract with the Azerbaijani Ministry of Economic Development for construction of the  rubbish recycling plant    nearby Baku.

Construction of the plant will be over by 2012.

The project cost makes EUR 346 million.

The construction will be carried out over three years. Two more years will be spent on removal of possible shutdowns, and then CNIM S.A will become plant’s operator during 20 years.

The plant will allow reduction of garbage in Baku 10-fold and its weight 3-fold. The enterprise conforms to toughest ecological standards of the European Union and Azerbaijan.

Taking into account volume of the construction and use of modern technologies with the purpose of all-round control on construction and exploitation of the plant it will be attracted a consulting company with advanced experience.

The newly-established company entitled CNIM Azerbaijan Ltd passed state registration as early as in October, 2008. New company’s charter capital is USD 100,000 and its founder shareholder is CNIM’s Holland-based branches – CNIM Industry Netherlands B.V. and CNIM Netherlands B.V.

Besides, CNIM asks up to EUR 18-20 million for management with the enterprise.

The plant will be located on the 10 hectare area in Balakhani settlement.

Construction works will last for three years. The plan will be exploited for 10 years with possible management prolongation up to 20 years.

Processing 500,000 tons of waste,  the  plant will produce 125,000 tons of slime, generate 231.5 million kWh of power covering 15% of its own needs. The project cost makes EUR 346 million.

CNIM will both construct and run the enterprise.

The tender procedure for the plant construction was closed on 11 February 2008.

The contractor is to build the plant with capacity of incineration of 500,000 of waste per annum and use the best technology of cleaning and generation of energy.