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WB considers funding third irrigation project in Azerbaijan

Business Materials 16 March 2010 11:08 (UTC +04:00)

Azerbaijan, Baku, March 16/ Trend , N. Ismayilova /

The World Bank is considering the feasibility of a third project to rebuild irrigation systems in Azerbaijan, the WB Baku Office said today.

"The bank is in talks with the government about the feasibility of a third project in this sector, but a final decision has not been made. The talks will continue until the end of the second project in late September 2010," the WB Baku Office reported.

The first project was approved by the bank in 2000. Its goal was to restore and complete major irrigation canals and drainage collectors. The WB has allocated $42 million toward the project, which closed in 2006.

The WB Board of Executive Directors approved a loan worth $35 million to finance the project June 18, 2003. Later the bank allocated additional resources. The total project cost is $46.86 million. The project's main objective ofis to improve the efficiency and financial sustainability of irrigation system, covering an area of 56, 000 hectares, by providing assistance to water user associations (WUA) and the company Irrigation and Water Management.

The WB loan was granted on standard IDA terms.

A state program for 2009-2015 years has been developed for further the development and reconstruction of melioration and irrigation. One of its directions aimed at the reconstruction and establishment of new irrigation distribution systems, rehabilitation of the regional drainage networks. These operations are conducted in over a hundred facilities of melioration and irrigation in fifteen regions of the country. The major ongoing projects include the construction of Shamkir reservoir with capacity of 180 million cubic meters. Construction of Neftchala irrigation canal systems and melioration systems in Bilasuvar will be completed in the near future. With regard to finance maintenance and development of water system in the agrarian regions of the country, the main part of the costs still fall to the state.

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