Date of WB’s Approval of Additional Credit for Azerbaijan’s IDP EDSP Confirmed

Business Materials 1 March 2008 13:01 (UTC +04:00)

Azerbaijan, Baku, 11 February / Trend corr I. Khalilova / The credit for the expansion of the IDP Economic Development Support Project (IDP EDSP) in Azerbaijan is expected to be approved at the meeting of the World Bank's Board of Directors on 11 March, the WB Baku Office said. The bank is ready to allocate $15mln as additional financing, and the State-owned share in the project will comprise $5mln.

The talks on the project took place on 27-28 February.

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.

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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