Azerbaijan, Baku, Jan. 18 / Trend I.Khalilova /
The mission of the World Bank (WB), headed by Amitabha Mukherjee, is on a visit to Baku with the goal of clarifying the possibilities of attracting additional funding within the project on modernization of the judicial system in Azerbaijan, the government informed Trend on Friday.
"The new World Bank loan may be attracted within a separate project or in the form of additional funding for the ongoing project that has been in place since 2006 in order to accelerate the approval procedure," the government said. "According to optimistic expectations, its assertion is expected by the end of June 2013."
Although the government has not formally appealed to the bank for additional funding, components of the project are to be discussed during Mukherjee's visit. This will be followed by the assessment of the project.
WB mission visit will last until January 23.
WB Board of Directors approved the first loan for the judicial system of Azerbaijan on June 29, 2006. Bank's share in $35.6 million worth five-year project amounted to $ 21.6 million. The grant worth $3 million was allocated by the Japan Special Fund, and the share of the government of Azerbaijan totaled $ 11 million.
WB loan is granted within the International Development Association on standard terms - 35 years with a grace period of 10 years and interest rate of 0.75 percent per annum. After the 10-year grace period repayments on 1.25 per cent will start, and from 2026 to 2041, by 2.5 percent.
In 2011, the World Bank Board of Directors approved additional funding for this project in the amount of $ 9.2 million from IDA and $ 24.2 million loan from the International Bank for Reconstruction and Development (IBRD). The government's share in the project amounted to $28.3 million; the total amount of funding for the project is estimated at $61.7 million.
The project objective is development of the capacity of the judicial system of Azerbaijan, improvement of its efficiency, as well as improvement of public access to information and services.