Azerbaijan, Baku, Aug. 23 / corr Trend N.Ismayilova /
The World Bank's loan allocated for realizing second project on reconstructing Azerbaijan's irrigation system and improving its management has been fully spent, WB Baku Office said
"WB is carrying out work to conclude the project, financing for which has been fully used."
The project is expected to end in accordance with schedule - by late September 2010.
Earlier the World Bank extended a second irrigation system reconstruction project in Azerbaijan and improved its management. The project was initially set to end March 31. The bank prolonged the project's wrap-up work, although its investment portfolio has been fully used.
The WB Board of Executive Directors approved a loan worth $35 million to finance the project June 18, 2003. The amount of the loan increased to $40 million giving the fact that the rate SDR has increased today from 1.3 to 1.55 USD. Later the bank allocated additional resources. The total project cost is $46.86 million. The WB loan was granted on standard IDA terms..
The project's main objective is 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.
Under the project, the funds were allocated to improve Irrigation and Water Management's organizational and technical capabilities for using water resources, train WUA staff and assist these associations becoming leaders in providing irrigation drainage systems operation and logistical support.
Several activities aimed to facilitate WUA's development in Azerbaijan by providing technical assistance to draft plans for training and logistical activities.
The project covers some 280 WUAs in 11 regions. Under this component, assistance will be provided to upgrade farm infrastructure covering about 56,000 hectares, as well as separate objects outside the farms to ensure an adequate and timely water supply.
It's expected that after the completion of the project, a stable and solid institutional framework for ensuring the stability of the WUA, which, thanks to this project will have the opportunity to manage the infrastructure, will be created in Azerbaijan, and those associations, which take advantage of the fruits of modernization and improvement of systems will continuously receive the necessary irrigation water in sufficient volume.
This is the second project financed by the WB to improve irrigation in the country. The first project for irrigation and drainage infrastructure rehabilitation and construction was approved by the bank in 2000 and its goal is the restoration and completion of major irrigation canals and drainage collectors. The WB has allocated $42 million toward the project, which closed in 2006.
Aug 23, official exchange rate is 0.8038 manat to $1.