Mammad Musayev, the Chairman of Managing Board of Agrar-Credit, reported that the non-bank credit organization Agrar-credit is in talks with the international financial organizations on the participation of new agriculture projects implemented in Azerbaijan as an agent bank, Trend reports.
Following the sanctioning of the North Development Project in Azerbaijan of the International Fund for Agriculture Development (IFAD), a tender was announced to select the credit organization.
Musayev said that Agrar-Credit has also presented its proposals for participation in the implementation of credit components of the project which comprises $4.8mln. Under the first IFAD agriculture project, Turanbank implemented the agent functions.
An agreement on the project was signed in Baku on 27 July 2006. The project covers 4 northeast regions of the country - Khizi, Siyazan, Devechi and Absheron Districts. It is planned to improve inner-economy melioration work.
The total value of the project is $25,148mln with the initial share of Azerbaijan to the amount of $2.69mln. The Government refused OPEC to co-finance ($7.9mln), as the Fund increased annual rate of Azerbaijan from 0.75 to 5%. As a result the Government decided to finance this share at the expense of the public budget.
Under the project some $10mln will be directed at work on melioration, $6mln on the establishment of the Association of Water Users, $4.8mln on crediting and the rest on maintenance of the working group.