WB to Put for Approval of Directors Additional Credit for Azerbaijan’s IDP EDSP

Business Materials 11 February 2008 20:58 (UTC +04:00)

Azerbaijan, Baku, 11 February / Trend corr I. Khalilova / The Azerbaijani Prime Minister Artur Rasizade signed a protocol after the official negotiations with the World Bank (WB) within the framework of expansion of the IDP Economic Development Support Project (IDP EDSP) which began on 27 January, the WB Baku Office said on 11 February. The bank is ready to allocate $15mln as additional financing, and the State-owned share in the project will comprise $5mln.

The bank is ready to put the project for approval of the WB Board of Directors, but not earlier than March.

Additional credit funds are intended for financing of IDPs' micro projects implemented trough the Refugee and IDP Economic Development Fund of Azerbaijan. The micro projects will cover the field of infrastructure and services - reconstruction of roads, restoration of electric power supply, water supply, and 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 2008 fiscal year. The total amount of the quota comprises some $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 were allocated for 35 years (10 years of delay are possible) under 0.75% interest rate.

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