Azerbaijani Government and WB Sign Agreement on Additional Financing of Economic Development Project of IDPs
Azerbaijan, Baku, 15 May / corr. Trend I. Khalilova/ On 15 May, the Azerbaijani government and the World Bank signed a loan agreement on granting additional financing to realize the project to promote economic development of internally displaced persons (IDP EDSP). The total volume of the joint financing amounts $24.19mln, SDR 9.6mln ($15mln) of which will be allocated by the International Development Association and $8.69mln (with VAT of $3.69mln) by the government.
Ali Hasanov, the vice-premier and head of the State Committee for Work with Refugees and IDPs, said during the signing ceremony that these funds aim at continuation of the project, the realization of which was launched in 2005 with the support of WB and which is expected to be completed by the end of 2008. [The project cost $12.6mln, $11.5mln of which accounts for VB loan]. The funds were spent a year earlier than it was expected; however, some 50 micro-infrastructure projects out of 200 were not implemented because of inflation processes.
"Taking into consideration seriousness of the problems of the IDPs, the government has appealed WB to grant additional financing," said Hasanov. "Banks positive reply proves its trust to Azerbaijan," he said.
According to Hasanov, the projects provide some 108,000 IDPs with aid. The Bank has lowered the share of the communities in the realization of micro- project up to 3% at the Azerbaijan's request.
The new project is intended for three years. It includes two components. The first is financing of different infrastructural projects suggested by IDP communities, as well as support to implementation of the project. The second component envisages meeting operational expenditures of the Fund for Social Development of Refugees and IDPs of Azerbaijan, trainings, aid to development of micro projects, paying for consultation services on appraisal and monitoring, as well as financing of the auditing expenditures within three years.
The head of the WB Baku Office Gregory Jedrzejczak voiced his satisfaction on cooperation with Azerbaijani Government. He said the additional financing is a good practice.
In 2001, WB allocated the first credit for support to economic development of IDPs in Azerbaijan in the sum of $10mln. A total of 192 micro projects on restoration of infrastructure in the places populated with IDPs were financed through the credit. About 170,000 people benefited from the project.
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