After July 2008, Azerbaijan May be Deprived of World Bank’s Lax Credits
Azerbaijan, Baku /corr. Trend I.Khalilova / The World Bank's Regional Director for South Caucasus, Donna Douset-Koyrolo, arrived in Baku to review the realization of the programs within the WB Strategy for Azerbaijan and Bank's future plans and to become familiarized with the situation in implementing the projects in Baku, a source at the WB Baku office stated.
Within the 2008 fiscal year, the WB intends to cease lax finances for Azerbaijan in line with the International Development Association (IDA) and direct the funds to the poorest countries, especially in Africa. The countries where the amount of the GDP per capita does not exceed $1,280 are referred to as this category. Azerbaijan has already exceeded the figure.
"Due to it, by June the Government of Azerbaijan should complete devising projects referred as to lax financing," the same source stated.
The WB intends to provide two lax credits for Azerbaijan in the 2009 fiscal year in line with the International Development Association (IDA) for the projects on accountability in the corporate and State sectors of Azerbaijan (CAPSAP) and the third stage of the reforms in the education system.
Devising the CAPSAP project is coming to an end, but as regards to the continuation of the reforms, the WB has begun talks with the Education Ministry of Azerbaijan. Up to now, the WB has allocated $23mln for the social sector.
Within its strategy of assistance to Azerbaijan, the WB intended to allocate $20mln for education. However, depending on the volume of the works, the amount of the credit may be changed during the talks. The WB suggested allocating $20mln for CAPSAP as a result of devising the second project.
In addition, Koyrolo became familiarized with the situation of the railway and ecologic projects which also may be confirmed by the end of June 2008. These projects will be financed according to the conditions of the International Bank for Reconstruction and Development.
The WB Regional Director has already held talks with Azerbaijan's Prime Minister, Vice Prime Minister, Minister of Finance, Minister of Economic Development, Minister of Emergency Situations. His visit will conclude on 20 November.