Azerbaijan: delay to financing of glass factory project

The International Bank of Azerbaijan (IBA) reported a delay to financing from the Black Sea Trade and Development Bank (BSTDB) for equipment and machinery of the glass factory in Azerbaijan. The bank …

The International Bank of Azerbaijan (IBA) reported a delay to financing from the Black Sea Trade and Development Bank (BSTDB) for equipment and machinery of the glass factory in Azerbaijan. The bank blamed the delay on technical problems related to the lender and to the reception of documents, but said it expected the problems reported on 22 August 2005 would be resolved shortly. The 5-year loan was extended to the IBA for on-lending to Caspian Management Systems Ltd., a private Azeri company which acquired the factory under the Azeri privatization program. The BSTDB financing will contribute to the total project cost of EUR 15.4 million, which will go to develop the glass plant capacity of 100 million jars and bottles per year and provide employment for about 100 people. Project financing comes from The Islamic Development Bank (USD 5 million), the lender itself (EUR 5 million) and the IBA. The facility, which is located in the Garadag region of Baku, will produce bottles and jars of different volumes using a 6-section machine for the wide-necked containers and an 8-section machine for the bottles.