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WB to accelerate preparation of Azerbaijan energy supply improvement project

Business Materials 27 April 2015 16:49 (UTC +04:00)

Baku, Azerbaijan, Apr. 27

By Azad Hasanli - Trend:

The World Bank (WB) will accelerate the preparation of the project to improve the energy supply in Azerbaijan, Baku office of WB told Trend April 27.

"Now we are at the initial stage of work with Azerishig [a single operator on the distribution of electricity in Azerbaijan]," WB office said. "Most probably, we will need several months for the determination of the parameters of the project. When we are able to delineate its contours, the discussion of the scope of financing will begin."

The project envisages improvement of the quality of the relevant infrastructure in the country, and specific areas will be identified for that, as well as improving the financial stability of the state-owned company, according to the source.

"Only one WB mission visited Baku until now within the framework of this project, so it is early to speak about specific areas," WB office said. "We are in constant contact with our partners in Azerbaijan, but the bank plans to send another several missions to Azerbaijan during the year."

The Azerbaijani government urged the international organizations, such as the Asian Development Bank and the World Bank, to render financial assistance to improve the country's energy supply, ADB official office in Baku told Trend earlier.

The main amount worth $ 750 million was requested from the ADB.

The project, planned together with Azerishig OJSC, will cover the whole country and consists of three tranches. The first tranche will be involved in the areas with the worst situation with energy supply.

The total cost of the project will be $1 billion.

Azerishig JSC was established upon Azerbaijani President Ilham Aliyev's order on February 15, 2015 on the basis of Bakielektrikshebeke JSC.

By purchasing and selling electricity, Azerishig JSC is engaged in ensuring reliable, safe and effective supply of electricity to consumers, using new technologies, modernization of the technical base and its effective use, as well as other activities aimed at developing this sphere.

Azerbaijan has been a WB member since 1992. The amount of loan agreements signed between Azerbaijan and the WB hits $4.086 billion.

As of January 1, 2015, WB delivered the loans worth $3.739 billion to Azerbaijan. These funds were used to finance 50 projects. Azerbaijan has used $2.297 billion by January 1, 2015 or 66.4 percent of total loans taken from the World Bank (WB). Besides these loans, WB allocated 45 grants totaling $ 41.586 million to Azerbaijan in 1995-2014.

The WB has allocated $185.7 million to implement six projects in the energy sector since the beginning of cooperation.

Edited by CN

Follow the author on Twitter: @AzadHasanli

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