IDB changes approach to financing of projects in Azerbaijan
Azerbaijan, Baku, April 29 / Trend I. Khalilova /
The Islamic Development Bank (IDB) changed the approach of financing the projects in Azerbaijan by increasing the maximum amount of credit allocated for one project nearly five times, the government said.
"Earlier, the limit of financing a project was set between $30-40 million by the IDB," a source said. "The bank can allocate up to $ 150 million now".
It was proposed to consolidate the projects - to combine several projects into one by increasing the limit within the preparation of a new strategy for cooperation for 2011-2013.
"Attracting other international financial institutions to finance the projects was not envisaged. It was so with agricultural projects worth $102.8 million.
About $65.6 million fell to the Islamic Development Bank and $19.7 million - International Fund for Agricultural Development," a government source said.
Changing the approach of financing the projects enabled the bank to significantly increase the cost of the first program of cooperation with Azerbaijan. The IDB plans to allocate about $1.4 billion to implement projects in the country until 2014.
The new program includes about 13 projects. While the cost of the current program, consisting of nine projects, is approximately $ 460 million.
Azerbaijan is a member of the Islamic Development Bank since 1992. Today, the IDB portfolio in the country reached $700 million.
The share of the country's participation in the bank's capital amounts to 0.13 percent
The Islamic Development Bank is an international financial institution established in pursuance of the Declaration of Intent issued by the Conference of Finance Ministers of Muslim Countries held in Jeddah in December 1973. The Inaugural Meeting of the Board of Governors took place in July 1975, and the Bank was formally opened on 20 October 1975.