Azerbaijan & WB Launch Negotiations on Additional Financing of IDP EDSP Project
Azerbaijan, Baku, 28 January / Trend corr I. Khalilova / On 27 January, the Azerbaijani Government and the World Bank (WB) launched official negotiations to enhance the project to improve the IDP Economic Development Support Project (IDP EDSP). The negotiations are held via video conferencing, the WB Baku Office said on 28 January. WB offers a $15mln credit as additional financing, and the Azerbaijani Government will allocate $5mln.
The project is expected to be approved at the WB Board of Director in March.
Additional credit funds are intended to finance the IDPs' micro projects implemented through the Refugee and IDP Economic Development Fund of Azerbaijan. The micro projects will cover the field of infrastructure and services, the reconstruction of roads, the restoration of electric power supply, water supply and the construction of sub-artesian wells.
The WB credit will be allocated through the International Development Association (IDA), through which Azerbaijan will receive the last quota for soft financing in the 2008 fiscal year. The total amount of the quota totals $131mln.
Taking that into consideration, the Azerbaijani Government applied to the bank for more funds for IDP EDSP. The previous credit in the sum of $11.5mln was approved at the bank's Board of Directors on 15 February 2005. The fund was allocated for 35 years (delay of 10 years possible) under 0.75% interest rate.