WB refuses to prolong second phase of agricultural program in Azerbaijan

Business Materials 10 January 2012 20:01 (UTC +04:00)

Azerbaijan, Baku, Jan.10 / Trend N.Ismayilova /

The World Bank (WB) does not consider it necessary to prolong the second phase of the adapted program on agriculture development and lending in Azerbaijan, the Bank's Baku office told Trend on Tuesday.

"Implementation of the second phase of the adapted program will end in Feb.2012. Earlier its possible prolongation for 4 months until late June, 2012, was considered, but now it is not necessary," the WB said.

According to the report, all goals envisaged by the project have been successfully achieved and funds allocated for its implementation are completely drawn.

The Azerbaijani government and the World Bank signed a loan agreement on the second phase of the adapted program of agriculture development and lending in 2006. Implementation of this project contributes to increasing farmers' revenues and productivity of agricultural enterprises. The implementation of the second project started in 2007.

The total cost of the project is $59.5 million, $29.2 million of which is the WB's loan. International Development Association (IDA) allocated $20.5 million. Some $8 million are allocated at the expense of IDA toughened terms. The government allocated $12.6 million, PHRD (Japan PHRD technical assistance grants program) - $1.61 million.

The amount of funds allocated by the WB as a result of difference in the rates of exchange increased from $29.2 million to $32.1 million, of which $31 million was spent as of September, 2011. The residue was $1.1 million.

Under the implementation of the second phase of adapted program of agriculture development and lending, 46,000 small loans worth 62 million manat were allocated. This led to increase in investment volume in rural areas. Medium size enterprises in the agricultural business were allocated 110 investment loans worth $17 million. Also 74 grants were allocated to introduce and transfer advanced technologies under the second phase.