OREANDA-NEWS. October 08, 2010. The Asian Development Bank (ADB) within the framework of work over program of Multi-Tranche Financing Facility (MFF) of Power Distribution Development Investment Program made development outlook of this sector in the country.

The bank informed, during the period till 2015 growth of demand for electric power is expected by 4.7% on the average in Azerbaijan per  year.

“In order to cover it, during the same period it is planned to invest USD 3.8 billion in construction of  thermal and hydroelectric power stations with total capacity of 1500 MW,” it was informed.

At the same time, the Bank has put off consideration of the loan for this project in the Bank’s Board of Directors in late June 2011.

Up to date, the Bank has announced completion of Initial Poverty & Social Assessment (IPSA).

Initially approval of the MFF first tranche was scheduled for 2010 and then for March. The being-prepared program aims to strength and upgrade electricity distribution networks in about 40 administrative districts of the country, run by Azerenerji OJSC (electric supply operator) that implies to reduce electricity losses, raise energy efficiency, rehabilitation of delivery systems, and financial changes in Azerenerji.

At that, the amount of the loan did not change. At the first stage Power Distribution Development Investment Program will allocate USD 50 million as ordinary capital resources (OCR) and overall size of MFF will be up to USD 500 million.

The MFF “rose” on the basis of the Bank’s first energy project in the country: Power Transmission Enhancement Project. The project to enable to reconstruct power lines operated for more than 60 years is credited by the ADB for USD 160 million for 20 years with 5-year grace period and annual rate of LIBOR-0.08%.