IDB agrees financing of projects worth $405 million within 3 years with Azerbaijan
Azerbaijan, Baku, October 1 / Trend I. Khalilova /
The Islamic Development Bank (IDB) has coordinated the cooperation program over 2010-2012 with the Azerbaijani government. The program includes nine projects worth $405 million, the Azerbaijani government said on October 1.
"The program is expected to be finally approved after consensus is achieved on a project which IDB proposed to include," the government said.
The Islamic Development Bank has expressed willingness to finance and the tenth project to promote agricultural development of mountainous and highland areas of the country. It was first proposed by the Azerbaijani government. But it was excluded from it during coordination of the program. The bank is ready to allocate $ 30 million for this project. The government thinks that coordination of the program will complete within 2-3 days.
"Approval of projects in accordance with new terms of IDB financing will depend on preparation of projects, their estimated documentation, the government said. Beginning from 2009, the bank increased the flexibility of the mechanism to approve projects. If Azerbaijan does not submit projects in time, the Board of Directors will allocate funds to other countries. "
The program includes projects to construct waste disposal plant, electric power station Cenub, bank protection facilities, as well as in the field of land reclamation, agriculture, infrastructure improvement for refugees. The largest investments are envisaged for construction of a plant to burn out household waste to the amount of $120 million and electric power station Cenub - $100 million.
Today, the IDB has approved financing of projects in Azerbaijan worth $280 million. Azerbaijan cooperates and is a member of the Islamic bank since 1991. Its share in the bank's capital hits 0.13 percent.
Structural branches of the Bank, in particular, the Islamic Corporation for the Development of the Private Sector (ICD, is part of the IDB group), have already expressed their willingness to support projects in Azerbaijan directly along with financing of projects under the state guarantee.
The corporation is ready for directly supporting local companies together with expansion of financing through commercial banks.
The corporation has such an opportunity to finance the private sector in the country via Caspian International Investment Company, established by the ICD together with the Azerbaijani Investment Company.
Islamic Development Bank was established on October 20, 1975.
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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