Azerbaijan, Baku, August 1 / Trend I. Khalilova /
The Islamic Development Bank (IDB) launched talks with the Azerbaijani government within preparation of cooperation program over 2010-2012 in Baku, the Azerbaijani government said on August 1.
IDB mission headed by Deputy Director of the Operations Department Muhammad Reza Yousaf Khan arrived in Baku to discuss projects to be included in the program.
"First, projects in energy, irrigation, water supply, agriculture, infrastructure improvements for the refugees to the amount of $ 450-500 million were offered to the program. It is not ruled out that that list of projects will be corrected, as well as total cost of the program," the government said.
Mission's visit to Azerbaijan will last till August 3. At present, experts of the bank conduct meetings in the Azerbaijani ministries and departments.
Usually, three projects are given to IDB every year to get preferential, commercial loans and technical aid. However, IDB unwillingly gives preferential financing because of rapid economic development of Azerbaijan. But, the Azerbaijani government hopes to get funds for projects at preferential terms.
At present, IDB approved financing of projects in Azerbaijan to the amount of $280 million. Azerbaijan cooperates with IDB. Azerbaijan is IDB member since 1991. Azerbaijani share holding in the bank's capital is 0.13 percent.
Structural subunits of the bank, especially, the Islamic Corporation for the Development of the Private Sector (ICD enters IDB group) together with financing of projects under state guarantee has already expressed wilingness to support projects in Azerbaijan directly. Moreover, corporation is ready for supporting local companies together with increased financing through commercial banks.
Corporation has opportunity to finance the private sector in Azerbaijan through the Caspian International Investment Company, established by ICD, together with the Azerbaijan Investment Company.
Islamic Development Bank was established in 1975. Since establishment authorized capital of the bank increased 15 times - from 2 billion Islamic Dinars (Islamic Dinar is IDB unit IDB. It is equivalent to one Special Drawing Right of the International Monetary Fund) to 30 billion Islamic dinars.
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