A proposal for extra financing for the Azerbaijan Highway Project II has been submitted to the World Bank for its approval.

The project work involves reconstruction of the Hajigabul-Bahramtepe highway and 200km of secondary roads.

The World Bank is expected to fund $175m in agreement with the International Bank for Reconstruction & Development (IBRD) and International Development Association (IDA) standards.Out of the total amount, $113m will be financed by IBRD and $62m by IDA.

The loan for reconstruction of the Hajigabul-Bahramtepe highway will be approved on or before 1 July 2009, according to a World Bank official.

The upgrade of the highway from two to four lanes requires additional finance while the government will raise up to $50m from the World Bank.

The World Bank also approved $300m of extra financing for Highway Project II, for further reconstruction works of the Alat-Astara highway and construction of a bypass road between the Tagiyev and Sahil settlements.