The newly-formed Japan Bank for International Cooperation (JBIC), which was formerly the Overseas Economic Cooperation Fund (OECF), has signed its first ODA loan since it was established in October 1999.

JBIC will provide Azerbaijan with $172 million in order to finance the 400 MWe Severnaya Gas Combined Cycle Power Project II. An interest rate of 0.75 per cent has been applied to the project, and involving a 40-year repayment period with a 10-year grace period.