Oct 30 (CTK) - Czech builder PSJ will take part in the construction of a city on artificial islands near the coast of the Caspian Sea in Azerbaijan, the value of the contract reaching up to EUR395m, daily Hospodarske noviny (HN) said.
The total price of the project, called Khazar Islands, is expected to amount to about $100bn. PSJ will build four residential buildings as part of the project.
The new city is situated about 25 kilometers south of Baku, the capital of Azerbaijan, and will consist of 41 islands. It will house up to one million residents.
"We have signed a contract for one entire island on which four buildings should be built. We are now trying to secure funding for the first one which should cost about EUR100m," Jaroslav Jirkovsky, the director of PSJ's export division, told HN.
PSJ should start to build the first residential building in the spring of 2015.
The construction of the Khazar Islands city has already started. The city should be completed between 2020 and 2025.
The city will contain a Formula 1 racetrack and the Azerbaijan Tower, expected to be the tallest in the world with its height of 1,050 metres.
The contract in Azerbaijan is an opportunity for PSJ to offset the drop in contracts in Russia and Ukraine resulting from political and security tension between the two countries.
PSJ had to suspend contracts for the construction of shopping centres in Kiev, each worth EUR100m, at the last moment, for example, because the state-run Export Guarantee and Insurance Company (EGAP) significantly limited insurance of projects in Ukraine.
PSJ is one of the biggest construction companies in the Czech Republic. Contracts abroad accounted for 59 percent of its Kc4.36bn revenues in 2013.
Among PSJ's most important markets are Russia, Slovakia and Asian countries.
Bakudaily.Az
