Azerbaijan, Baku, August 26 / Trend , I. Khalilova /
International Development Association (part of the WB) decided to continue preferential financing for projects of Azerbaijan in 2010 fiscal year, Bank's Baku office said. [However, earlier it was stated that from 2009 the World Bank would suspend preferential funding for Azerbaijan in order to direct funds to the poorest countries, particularly Africa.]
"The funding for countries receiving preferential loans in 2010 fiscal year that began from July 1 is still specified, and therefore, the budget for Azerbaijan has not been established yet," the same source said.
In 2009, the IDA provided $70 million for Azerbaijan, which was distributed for two projects. Most ($62 million) of these funds were allocated for the project of construction and reconstruction of Hajigabul-Bahramtepe highway.
In 2008 fiscal year, the government managed to obtain from the World Bank six preferential loans for Corporate and Public Sector Accountability Project (CAPSAP), the third phase of reforms in the education system, development of water supply and sanitation, assistance to social security, social development, internally displaced persons in Azerbaijan and rural investment. $121 million was provided for their implementation.
Azerbaijan has overdrawn GDP as per capita in the sum of $1,280, which was determined by WB as main criteria while receiving privileged loans via IDA. Therefore, Azerbaijan expected to receive finance only on commercial terms. The per capita income amounted to$ 5403.9 in Azerbaijan in 2008.
As for now, WB has financed 47 projects with a total cost of $2.5 billion in Azerbaijan. In 2008, bank financed 13 projects $1.251 billion. The WB 2009-2010 strategy is over than $1 billion on commercial terms via the line of the International Bank for Reconstruction and Development.
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