Azerbaijan, Baku, August 16 /Trend, A. Akhundov /
The preparatory work has been completed within the second phase of the WB project on "Azerbaijan Rural Investment" (AzRIP), Azerbaijani Agriculture Minister Ismat Abbasov said at a meeting with head of the WB Baku Office Joseph Owen, the ministry reported.
"AzRIP project's successful results provide the basis for its implementation," Abbasov said. "An agreement on additional funding for this project has been successfully executed."
The loan agreement on the AzRIP project was signed on Sept. 23 in 2004 and took effect on Dec. 29 the same year. The project costs $21.1 million.
A total of $15 million falls to a loan from the International Development Association, $3.3 million to a grant from the Japanese government and the remaining sum -- $1.250 million -- to the Azerbaijani government. The Azerbaijani government and Wb signed a loan agreement worth $21.5 million on extra financing for the AzRIP in April.
Abbasov said the total cost of the second phase will amount to $54 million.
The implementation is scheduled for 2012.
"The project implementation promotes the development of infrastructure in rural areas, improves the local population's living standards and reduces migration on the spot," Abbasov said.
He also expressed confidence in further cooperation between Azerbaijan and the WB in the future.
The WB also continues implementing the second phase of the adapted development and agricultural lending program in Azerbaijan, which launched in autumn 2006.
The current WB portfolio in Azerbaijan consists of 20 projects worth $2.3 billion. Azerbaijan joined the WB in 1992. So far, the bank has provided $2.9 billion to fund 43 projects in Azerbaijan.