Azerbaijan, Baku, Feb. 27 / Trend I.Khalilova /
The cost of the new irrigation project in Nakhchivan, funding for which is proposed by the Islamic Development Bank (IDB), is estimated at $230-240 million, the government told Trend.
"In order to discuss the possibility of funding the project, the ADB mission headed by Murad Choek recently visited Nakhchivan, where the mission personnel viewed the amount of works that will be included in the project," the source said.
The project of irrigation and reclamation activities for development of agriculture in Nakhchivan is included in the programme of cooperation between Azerbaijan and the IDB for the period 2011-2013. The Islamic Development Bank will provide nearly $190 million for implementation of the project.
The State Committee for Land Reclamation and Water Resources of the Nakhchivan Autonomous Republic has prepared a feasibility study for the project which will be the continuation of the project for flood protection and upgrading and expansion of the irrigated area in Nakhchivan, which received a $64.83 million loan from IDB. The loan agreement for the project was signed in December 2011.
"This project, along with construction of shore protection structures along the River Araz, also provides for conducting irrigation works in Kengerli, Sharur and Sadarak. The new project is proposed to provide irrigation and reclamation works on unreached areas for the development of agriculture," the source said.
The decision to bring the IDB loan will be made following a feasibility study of the project taking into account the government's policy to limit external borrowing and involve it in exceptional cases only that is in the case of validity.
Azerbaijan has been a member of the Islamic Bank since 1991. The country's participation share in the bank's capital is 0.13 per cent.
The Islamic Development Bank was established in 1975.