OREANDA-NEWS. July 07, 2010. Within the last week’s annual meeting of the Islamic Development Bank held in Baku Azerbaijan implemented plans on raising finances from the IDB, reported the press-centre of IBA.

The Baku-based IDB resident office informs that at the meeting minister for economic development Shahin Mustafayev of Azerbaijan and IDB president Ahmad Mohammad Ali signed an agreement on a 150 million euro loan for a project of Baku incineration plant construction.

“Currently Azerbaijan is expected to finish inter-governmental procedures on agreement approval. The IDB will ensure financing after project efficiency start,” the IDB office said.

Earlier the minister informed that Bank’s loan finances would be used for purchase of equipment for the plant. The plant will be constructed at the expense of money to be allocated from State Budget.

The loan will be extended for 18 years with three-year grace term.

In December 2008 the Azerbaijani government signed a contract with CNIM S.A. for the plant construction. CNIM S.A. will run the plant for 20 years. The plant will be located in Balakhani settlement (Baku suburbs) on the 10 hectare territory. Completion of the construction is scheduled for September 2012. The project cost is 346 million euro.

CNIM S.A. is to build two lines designed for combustion of up to 500,000 tons of household waste a day. The project also includes a possibility of construction of the third line to incinerate 250,000 tons of domestic refuse annually. At that, the plant is to process annually 10,000 of medical waste. Utilization of sold domestic waste will enable to generate 231.5 million kWh of power. In its turn, that will provide receipt of additional income of 10 million manats a year.

Besides this loan, the International Bank of Azerbaijan also signed an agreement on raising finances for USD45 million from two sub-organizations of the IDB Group. Azerbaijan planned to sign with the Group the agreements for USD200 million within the session and obtained that.