Azerbaijan to Complete WB Quota with two-year delay

Business Materials 13 February 2008 20:18 (UTC +04:00)

Azerbaijan, Baku, 13 February / Trend corr. I.Khalilova / By the end of 2008 fiscal year, the World Bank may implement its obligations to finance the projects in Azerbaijan within the active strategy (2007-2010), WB Baku representation reported. At present, Christian Petersen, the leading WB economist, is on a visit to Azerbaijan in order to supervise the implementation of a three-year assistant strategy to Azerbaijan for 2007-2010.

The representation did not exclude the possibility that the WB may provide additional funds in the next two years, although the projects which will be included in the renewed program are not under discussions.

The current strategy is assessed at $1.26bln. Presently, the work is being carried out on 12 projects, the financing of which will allow assimilating the quota. The 6th one will be financed on the privilege conditions, totaling $131mln, from the International Development Association (IDA).

The privilege financing covers the improvement of social conditions of internally displaced persons, agricultural investments, modernization of financial sector, CAPSAP, reformation of educational system and providing social aid.

Other six projects (development of transport and trade through railroad, reconstruction of the highway, improvement of the water system and clean-up of the environment) will be financed through the International Reconstruction and Development Bank (IRDB). Furthermore, additional funds may be allocated for the water project through IDA.

Under the new WB assistant program, Azerbaijan will have access only to the Commerce Bank resources.

The correspondent can be contacted at: [email protected]