WB to expand support for Azerbaijan's agriculture

Azerbaijan Materials 27 September 2011 22:15

Azerbaijan, Baku, 27 September /Trend, I.Khalilova/
World Bank (WB) plans to start discussions with the Azerbaijani government in early October on the preparation of the third phase of adapted program of development and agricultural lending, WB Baku office told Trend on Tuesday.

The Bank plans to provide $30 to $ 50 million to implement the project.

"This project is expected to be approved in 2012, and the loan amount will be specified during negotiations with the WB," said the Office.

According to in formation, currently the second phase of the adapted development and agricultural lending program is under implementation. The loan agreement for the project was signed in autumn 2006.

"The Bank has extended to February 2012 the duration of the project, which expired in May this year," the office said.

The total project cost is $58 million, of which about $30 million accounted for WB loan.
Roughly $20.5 million was allocated from the funds of the International Development Association (IDA), $8 million - due to tightening of IDA terms, which are also designed for 35 years with a grace period of 10 years, but the rate of libor-2 percent.