Two int'l financial institutions intend to allocate over $ 80 million for Azerbaijani agricultural project

Business Materials 28 September 2010 17:49 (UTC +04:00)

Azerbaijan, Baku, Sept.28 / Trend I.Khalilova /

The International Fund for Agricultural Development (IFAD) together with the Islamic Development Bank (IDB) expects to receive consent from the Azerbaijani government to fund a new agricultural project worth $100 million, the IDB Baku office reported on Tuesday.

"The IFAD introduced to Azerbaijan an appraisal on the project, which also provides part of the IDB.  The process of collecting feedback from the relevant ministries and agencies is underway."

The Finance Ministry has asked the Agriculture Ministry to define the calculations on the project, the government reported.

The bank believes it will be possible to see a progress on this project in the coming weeks.

To finance the project the IDB plans to allocate up to $ 60 million and the IFAD - approximately $ 23 million. The remainder will be accounted for the government involvement.

The project includes Yevlakh, Agdash, Sheki and Oguz. 

The project is included in a three-year cooperation program with the IDB designed up to 2012. The approval of the project is scheduled for 2011.

Regardless, in the case of an official request from the Azerbaijani government to the bank, the timing of approval can be changed.

The project will be similar to agricultural projects implemented in Azerbaijan by the IFAD. The new project may also include the issuance of micro-credit, water user associations, the improvement of sewer systems and the supplying of equipment to farmers.

Since 1997, the IFAD has implemented a number of programs in agricultural development in Azerbaijan. So far, Azerbaijan has received only concessional financing from the IFAD for 40 years with deferred payments over 20 years.

The IFAD has provided four credits totaling $49.3 million. The foundation has confirmed its readiness to implement new projects in 2010-2015.

Azerbaijan has been a member of the IDB since 1992. Today, the IDB's portfolio in the country is $480 million.

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