Control System to be Established over Management of Loans with State Guarantee in Azerbaijan
Azerbaijan, Baku, 10 July / corr. Trend I.Khalilova / Azerbaijan's Cabinet of Ministers plans to establish a Centralized Monitoring System to observe realization of projects, financed by foreign borrowings under state guarantee, the Ministers' Cabinet said.
Islamic Development Bank issued $322,350 grant (200,000 Islam dinars) under total cost of $383,250 for establishment of this system. The bank submitted grant agreement project to the Cabinet of Ministers.
A Government source said that the Centralized Monitoring System is envisaged to be established by 1 January 2011 although the bank offered to complete it by 1 June 2009. Azerbaijani did not agree with bank's proposal, taking into account the procedures of signing agreement, involving consultants and implementing purchase (software, equipment). It is planned to hold trainings to instruct the monitoring system management. Moreover, familiarization with the world experience is expected to establish such systems, if they have.
The Cabinet of Ministers' Coordination Department on Loans under State Guarantee, Technical Aid and Grants provides introduction of these system.
The project is aimed at carrying out daily monitoring of realization of the project, spending loan resources involved in state guarantee for procedures, as well as improving foreign debts management. It will enable to ensure transparent and quickly to react to problems. Representatives of Cabinet of Ministers, Presidential Administration, Ministry of Finance, Ministry of Economic Development and other recipients of loan, consultants, general contractors of the project will access to the centralized monitoring system.
The exchange rate on 10 July is 0.8094 AZN/USD.
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