World Bank Requests Azerbaijan to Accelerate Loan Deal Signing on Approved Projects

Business Materials 1 September 2008 18:48 (UTC +04:00)

Azerbaijan, Baku, 1 September, Trend corr. I.Khalilova / The World Bank (WB) has sent a request letter to the Azerbaijani Cabinet of Ministers to accelerate the inter governmental procedures to sign a loan deal on the projects within the Country Partnership Strategy (CPS) project.

Bank's director board has approved 13 projects; a loan deal has been signed on the water project, as it was approved in 2007.

WB allocated $1,251bln to finance 13 projects for four years term. The last quota on privilege financing in the sum of $121mln Azerbaijan used in 2008 fiscal year.

The privilege financing covers the project to improve the social conditions of internally displaced persons (IDPs), rural investments, report in corporative and state sectors (CAPSAP), reform education system and aid to social providing.

The rest six projects (to develop transport and trade via railway, reconstruction of highways and district roads, upgrade of water system and cleaning of environment) were financed by the line of the International Bank of Reconstruction and Development. The International Development Association has partially funds to water project.

Bank will allocate additional $1.2bln to finance ecologic, road, energy projects, reforms in public sector and secondary and primary educational system.

Bank allocated $490mln to implement the two water projects,  $163.5mln  - ecological program, $300mln - to construct the highway (Alat-Masalli, Baku-Shamakha-Mugn section of the road, and bypass road from the Sahil settlement to Tagiyev settlement), $450mln - to improve railway structure, $26.7mln  -to develop social protection in Azerbaijan, $15mln - rural investments and $11mln - accounting project.

At present, new projects are being developed financing through the line of the International Bank for Reconstruction and Development.

At present, bank has allocated $2,323,700bln on 45 projects. WB' strategy for 2009-2010 fiscal year is planned to allocate $500-600mln yearly to finance loan projects in Azerbaijan.

On 1 September, the official currency rate is 0,814 AZN/USD.

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