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Implementation of WB micro-projects start in Azerbaijan

Business Materials 10 July 2012 14:23 (UTC +04:00)

Azerbaijan, Baku, July 10 /Trend A.Akhundov/

The Social Fund for Development of internally displaced persons in Azerbaijan announced a tender for participation in micro-projects on the electricity supply to the IDP's community, the fund said on Tuesday.

The tender has been announced as part of the World Bank 's(WB) programme to improve the living conditions and incomes of IDPs in Azerbaijan and involves the restoration of power supply networks for those located in the village of Mil in the regions of Beylagan, the village Ergedzh in Goranboy and Meneshli in Goranboy.

Bids can be submitted to the fund till 16:00 August 10, 2012.

It is the third project to improve the welfare of internally displaced persons in the country.

The WB allocated its first loan for $10.7 million in 2001 to promote the economic development of IDPs. The sum included $10 million of a WB loan and $700,000 from the Azerbaijani government, Hasanov added. The loan was spent on financing 199 projects in the IDP communities and the project benefited 175,000 refugees.

Some $12.6 million was granted on the implementation of a second project, 11.5 million of which was allocated through a loan from the WB. However, the funds allocated for the second project were not enough, so there was a need for additional funding. Some $24.19 million was allocated on completion of the project, $15 million of which was from the WB, and $8.69 million from the government.

These funds are allocated to implement 250 projects of displaced communities. About 189 micro-projects needing financed were completed, 32 projects were under execution and 53 under the appraisal process for early 2011 in the frame of the project. As a result of a survey conducted by the bank in 2010, 87.4 per cent of beneficiaries were satisfied with the results of the micro-projects.

The third WB project on improving the living conditions and income of IDPs in Azerbaijan approved in 2011 is funded by the International Bank for Reconstruction and Development (IBRD is part of the WB). The share of government involvement in the project is $28.5 million. Thus, the overall funding of the project is $78.5 million. Azerbaijan and the World Bank (WB) signed a credit agreement in Baku on Nov.16, 2011.

Under the project, there will be over 200 micro-projects carried out that will cover 120,000-150,000 people. It will also contribute to improving the living conditions of about 30,000 people. About 1400 young people will be able to get training and grants to start their own business. In addition, about 1500 micro credits will be given to the displaced to open or expand a business.

In total, about 175,000 IDPs in Azerbaijan will have greater access to infrastructure services, to improve their living conditions and earning potential under the new WB project.

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