WB to complete preparation of new project in Azerbaijan in autumn

Business Materials 22 August 2011 16:02 (UTC +04:00)

Azerbaijan, Baku, Aug.22/ Trend, N. Ismayilova /

The World Bank (WB) plans to submit a new project on the economic development of internally displaced persons (IDP) in Azerbaijan for approval to its Board of Directors this autumn, WB Baku Office said on Monday.

According to the office, the WB mission is expected to visit the country in September to summarize the preparation of the project.

"That is why, perhaps, after the mission is completed the project will be improved and submitted for approval to the Board of Directors by late autumn," the bank said.

The new loan to assist the economic development of internally displaced persons in Azerbaijan amounts to $50 million. The total project cost is estimated at $74.5 million. The Azerbaijani government will finance 25 percent of project cost and expenses for taxes (VAT).

The cost of the project's first phase is $12.6 million, of which $11.5 million will be allocated by the WB. Contrary to practice, project funds were introduced a year earlier, but 50 out of the 200 micro-projects on infrastructure were left complete due to inflation. Their implementation demanded additional funds.

Only $24.19 million was allocated to finish the project, of which 9.6 million SDR ($15 million) fell to the WB, and $8.69 million (including VAT at $3.69 million) went to the government.

Under the project, 108,000 IDPs will receive benefits.

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.