Today, on October 5, Azerbaijan`s Government and the World Bank (WB) has signed a credit agreement of the second phase of the adaptable program on development and crediting of the agriculture in Azerbaijan ,Trend reports. The agreement was signed between Azerbaijan`s Agriculture Minister Ismat Abbasov and Gregory Jedrzejczak, WB Country manager for Azerbaijan.
During the ceremony of signing, Mr. Jedrzejczak told that the implementation of the project will further the increase in incomes of the farmers and the productiveness of the agricultural enterprises.
According to him, the total value of the project is $58 m., and $30 m. out of this sum will fall at the WB credit. At the same time, the International Development Association (IDA) is expected to grant $20.5 on the project, with $8 m. at the expense of the IDA tightened terms which also considered for 35 years with a 10-year adjourning period, but with the interest libor-2 percent (3 percent at present).
The rest part of the project will be financed at the expense of the Japanese grant ($1.6 m.). $9.6 m. is a revolving fund formed as a result of the first phase of the project. $7.8 m. is the Government`s share holding.
The project consists of two components. The value of the first components is $42 m, and it is aimed at support of the agricultural business services. According to Mr.Jedrzejczak, the projet envisages strengthening of financial services in the regions of the country, particularly the activity of the credit unions founded within the first phase of the program. In addition, strengthening of the potential of the local banks, support of the leasing companies, information and marketing services are envisaged within the program as well. A technical aid is expected to be rendered for this aim.
The second component at the value of $14 m. envisages increasing of the agricultural production and productiveness, expanding of advisory services, strengthening of possibilities on using of veterinary services, introduction of new agricultural technologies.
The WB Manager for Azerbaijan is sure that the second phase of the project will be a success like the first one.
The Agriculture Ministry also thinks that the project will trigger the prolong development of the agriculture in the country. According to him, the implementation of the project is expected to be launched in the beginning of 2007 and will be considered for 4 years.
Azerbaijani Government and WB Signed Credit Agreement on Agricultural Project's 2nd Phase
