Azerbaijan, Baku, Sept. 20/ Trend /
Azerbaijani Prime Minister Artur Rasizade and Asian Development Bank (ADB) Vice President Xiaoyu Zhao agreed on future projects today, the Cabinet of Ministers told Trend.
During the meeting, Zhao lauded the level of socioeconomic development in Azerbaijan.
The sides discussed the process of implementing infrastructure projects in Azerbaijan, analyzed their results, and identified promising areas for future cooperation. They also agreed on the implementation of projects in the energy, road transport, agricultural, water supply, and sewage system rehabilitation and reconstruction sectors.
Until September 2007, the total portfolio of projects financed by the ADB under state guarantee was worth $104 million. Three projects have been financed by the ADB in Azerbaijan since 1999.
However, as a result of the approval of Multitranche Financing Facility (MFF) funding for transportation projects worth $500 million, the portfolio has increased to $304 million.
The bank granted credit worth $160 million in 2008 for energy projects and $55.4 million for road projects. As a result, the ADB portfolio for Azerbaijan increased to $519.4 million. After the approval of credit worth $75 million from the MFF, the portfolio hit $594.4 million.
The ADB is a major player in the direct funding of the Azerbaijani banking sector.
To date, the ADB has approved credit lines for Azerbaijani banks worth $56 million, excluding loan agreements signed this week with five banks for the Trade Finance Program and the issuance of revolving loans. However, plans to expand the banking sector portfolio to $120 million have been delayed due to global processes.
A loan allocated for a cement plant was the first ADB investment in infrastructure in the private sector of Azerbaijan.
The 67-member ADB was established in 1966. Its headquarters are located in Manila in the Philippines. Azerbaijan joined the ADB in December 1999 and its share in the bank's capital is 0.5 percent.
The ADB's leading shareholders Japan and the United States (31.2 percent), India and China (12.8 percent), Australia, and South Korea and Canada (16 percent).
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