EBRD extends loan utilization deadlines for two projects in Azerbaijan's Ganja

The European Bank for Reconstruction and Development (EBRD) and the government of Azerbaijan have agreed to extend the deadlines for disbursement of loan funds under two infrastructure projects in Ganja.

According to Report, the loan utilization period for the "Street Lighting in the City of Ganja" project has been extended from September 2025 to August 2027.

The need for the extension is related to delays in the procurement of consulting services by the project implementation group, as well as in conducting tender procedures for the supply and installation of lighting systems. As a result, the loan of 12.5 million euros was not fully disbursed within the established timeframe.

A similar decision was made for the "Municipal Solid Waste Management in the City of Ganja" project, financed in the amount of 10 million euros. The deadline for the use of funds has been extended until December 2026.

The project implementation originally envisaged the establishment of a management group responsible for procuring consulting services. However, the cost of services of the selected consultant exceeded initial expectations, which required attracting additional technical assistance to cover the expenses. The submitted proposals did not meet the EBRD's requirements, and as a result, the tender results were annulled.

These factors prevented the disbursement of loan funds within three years from the signing of the agreement and necessitated the extension of the utilization deadlines.

The EBRD has invested 3.63 billion euros in Azerbaijan across 202 projects.