Azerbaijan's Milli Medjlis has ratified a loan agreement on the “Project of reconstruction and expansion of the water supply and sewerage system in Baku between Azerbaijan and the Saudi Development Fund”. The project envisions reconstruction and expansion of the system of water supply and sewerage of the 20th section residential massive in Bibieybat area of Baku and adjacent regions. By the forecasts, in the next 15 years the population here will be about 170,000 people. There is a plan to build a 500 mm main water pipe extending to 22 kilometers with a capacity of 1400 cubic meters per hour. In addition, the sewerage system extending to 72 kilometers and 200-600 mm in diameters will also be created. The fund allocates SR93,750,000 (about $25 million) for 20 years with a grave period of 5 years under the annual rate of 2 percent. The overall cost of the project is estimated at about $63 million. Separately, in Minsk, investments from Saudi Arabia may pour into Belarus following the ratification of Belarus-Saudi Arabia intergovernmental agreement on the assistance and mutual protection of investments, Deputy Foreign Minister of Belarus Valery Voronetsky said at a session of the House of Representatives' permanent commission for international affairs and links with the CIS on Tursday. “The policy of Saudi Arabia to increase strategic external assets might be used by Belarus to raise investments for major joint projects,” Voronetsky said. According to experts, the international reserves of the Gulf states are bigger than those of China and are estimated at $1.6 trillion. The bulk of these reserves accounts for the UAE, Saudi Arabia and Kuwait. In the near term, this figure might rise to $3 trillion. Some of these reserves are expected to be invested into major new markets, like India, China, Pakistan, and Malaysia. “Belarus could also become an appealing investment destination,” the deputy foreign minister said. He admitted, though, that the interest of foreign business in potential projects in Belarus in not high yet. Voronetsky believes that Belarus-Saudi Arabia agreement on the mutual protection of investments will help galvanize the business activity in the country. Voronetsky noted that the capacity of the Saudi market, alongside with the efforts to promote the manufacturing industry, create preconditions for the investment of Belarusian companies to get a foothold on this promising market. The deputy foreign minister meant the establishment of assembly production facilities, introduction of scientific know-how. He added that a number of organizations affiliated with the National Academy of Sciences of Belarus are already operating on the Saudi market and implementing projects worth $11 million. The agreement to be ratified is aimed to create favorable conditions for raising investments.
