State Social Protection Fund chairman: Consultant to be chosen to prepare long-term development model of Azerbaijan's pension system within month

Business Materials 14 May 2011 16:11 (UTC +04:00)

Azerbaijan, Baku, May 14 / Trend A. Akhundov /

A company, which will prepare a model of the long-term development of the pension insurance system in Azerbaijan, will be determined during a month, the chairman of the State Social Protection Fund Salim Muslimov told media.

"The tender completed within the WB joint project on social protection in Azerbaijan," he said. "The tender bids will be opened today. The tender involves five leading companies in this area. A special evaluation committee will select the bidder to prepare a model for further development of the pension insurance system in the country within a month."

He said that this project is financed by the WB's loan. It provides for all actuarial calculations and subsequent determination of basic parameters of the pension insurance system in Azerbaijan after 2015.

Muslimov said that one of the leading specialists in this field, a representative of the World Bank Anita Shwarz is in Baku for several days. Several meetings were held. One of them took place on Friday. The prospects of the pension insurance system in Azerbaijan were presented.

The Azerbaijani government and WB signed the agreement on this project worth $54.6 million in November 2008. WB will allocate a loan worth $26.7 million under the International Development Association (for 35 years with grace period of 10 years and 0.75 per cent per annum) to finance the project.

There are four components to the project: a complete modernization of the labor market, including the improvement of labor laws, labor protection system, work of employment services and policy-welfare system, and modernization of the pension system and project management.

The objective of the Social Protection Development Project for Azerbaijan is to improve delivery of labor market and social protection interventions through strengthened institutions, enhanced institutional and human resources capacity, and improved targeting of social safety net programs.
The project covers 2008-2013.