WB, Azerbaijan Set Date to Sign Loan Agreement on  Social Project

Business Materials 19 November 2008 12:38 (UTC +04:00)

Azerbaijan, Baku, 19 November / Trend corr. U.Ismayilova/ "The World Bank (WB) and Azerbaijani Government will sign a $54.6mln loan agreement on a project of Development of Social Protection in Azerbaijan on 28 November," Elnur Sultanov, head of the International Relations Department of the Ministry of Labor and Social Protection, said.

According to Sultanov, authority to sign this document was presented to Minister of Labor and Social Protection Fizuli Alakbarov from Azerbaijan and head of the WB Baku Office Gregory Jedrzejczak - from the Bank.

The WB will allocate $26.7mln to finance the project under conditions of the International Development Association (for 35year with ten-year grace period and on 0.75% of interest rates).

The WB Board of Directors confirmed the project on 27 May.

The project comprises four components, including full modernization of system of labor market, as well as improvement of labor legislation, protection system of labor and activity of employment service; formation of policy of social ensuring system; modernization of pension system and management with project.  

The project envisages full institutional development and modernization of professional training system and development of professional classifiers on the base of the European experience, as well as establishment of professional training centre at the Ministry.

The project on Development of Social Protection in Azerbaijan covers five years with realization period from 2008 to 2013.

The WB has financed one project in the social field of the country. The project on Pension Reforms and Social Ensuring has being realized in Azerbaijan since 2005 and the bank has allocated $10mln to the project.

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