Baku, Azerbaijan, Sept. 17 /Trend/
Ellada Khankishiyeva, head of Trend's analytical center
The total amount of foreign investments in Azerbaijan's economy hit 1.586 billion manat in January-August 2011, or 42.4 percent more compared to the same period of last year.
Some 9.6 percent or 152 million manat of total foreign investments in the country was made by the international financial institutions (IFIs). This is 43.6 percent more compared to the same period of 2010.
The major volume of investments was allocated by WB in the amount of 124.36 million manat with special weight of 7.8 percent. ADB allocated 25.3 million manat (1.6 percent) to implement projects in Azerbaijan, while Islamic Development Bank - 1.7 million manat (0.1 percent) and Kuwaiti Fund for Economic Development - 549,500 manat (0.1 percent).
The most active investor among the IFIs - WB is cooperating with Azerbaijan based on a new strategy for 2011-2014, in which the main goal is to diversify Azerbaijan's economy and develop non-oil sector. Bank's current portfolio in Azerbaijan consists of more than 20 projects in different spheres of economy worth $2.3 billion. In total, the WB has allocated to Azerbaijan $2.9 billion to finance 43 projects, which ranks the country the third in the world after Turkey and Kazakhstan in terms of portfolio.
ADB cooperates with Azerbaijan based on a business plan for 2011-2013, according to which Azerbaijan will receive a loan of $340 million. The business plan is primarily focused on infrastructure projects that are a priority for the Government of Azerbaijan in terms of economic diversification and development of non-oil sector. ADB's active credit portfolio in the country reaches $680 million. During the period of cooperation, ADB allocated to the Azerbaijani government and local companies grants totaling $13.122 million.
The IDB changed the approach of financing the projects in Azerbaijan by increasing the maximum amount of credit allocated for one project nearly five times. Earlier, the limit of financing a project was set between $30-40 million by the IDB. The bank can allocate up to $150 million now. Today, the IDB portfolio in the country has reached $700 million for projects in various spheres of the economy.
Kuwait Fund for Economic Development completed financing Azerbaijani economy participating in investing in the project for construction of the Baku district roads. The amount of 549,500 manat from the Kuwaiti Fund for Economic Development is a guarantee obligation of quality of work implemented by the contractor for a term of the warranty period on the last project.