IDB signs new cooperation program with Azerbaijan

Business Materials 17 May 2011 16:16 (UTC +04:00)

Azerbaijan, Baku, May 17 / Trend I. Khalilova /

The Azerbaijani government has signed a new cooperation program worth $1.4 billion for 2011-2013 with the Islamic Development Bank (IDB), the IDB Baku Office said.

The new program includes about 11 projects in agriculture, irrigation, road construction and water supply and sewerage system improvement.

"The program does not exclude concessional financing for projects in the agricultural and irrigation areas," the bank said.

Plans include implementing four projects in 2011. The bank plans to allocate about $450 million. One project was approved by the IDB Board of Executive Directors in early May.

The project will cover activities flood protection and irrigated areas modernization and expansion in Nakhchivan.

The bank has allocated $64.83 million for the project with a total cost of $80 million. The IDB allocated $9.5 million for the project on preferential terms.

In general, it is planned to realize two irrigation projects. The work is underway to prepare the feasibility study within the Mil-Karabakh Water Collector reconstruction project. The IDB has allocated a grant worth $347,000. The second project involves the construction of the Shamkir machine channel. A feasibility study is also underway.

For the first time, the program cost with the IDB is more than $1 billion.

The current program's cost, consisting of nine projects, is about $460 million.

Azerbaijan has been an IDB member since 1992. Today, the IDB portfolio in the country has reached $700 million.