Azerbaijan, Baku, 17 April / Trend, E. Ismailov /
The new partnership strategy of the Asian Development Bank (ADB) with the government of Azerbaijan for 2013-2017 will be approved in October 2013, ADB's Resident Representative for Azerbaijan Olli Norojono told reporters on Wednesday.
"Currently, the strategy is undergoing the final approval procedure and is under the intra-examination", Norojono said.
The head of ADB's Baku office noted the possibility of the bank's participation in the financing of new areas such as solid waste management, alternative and renewable sources of energy, modernization of railway transport and urban public transport under the strategy.
"There are currently two ADB missions in Baku - one in transport, the other in water supply," Norojono said.
According to him, the transport mission studies the progress of ongoing projects and discusses the possibility of allocation of the second tranche under the MFF-2 (the second program for multi-tranche financing of the transport sector). The first tranche of $250 million was approved for the construction of a 30-kilometer section of the Masalli-Jalilabad road, which, in turn, is part of the Masalli-Shorsulu highway. The total project cost is $312 million, of which $62 million constitute the Azerbaijani government's share in the project. According to Norojono, the signing of a loan agreement for the project is expected by the end of April.
The ADB's participation in financing the renovation of the railway is expected in the construction sector and laying of railway lines.
"Negotiations with the Agency on alternative energy sources on the possibility of financing by the bank of the project for processing of biomass will be held in August," Norojono said.
At present, the ADB has seven active projects in Azerbaijan with a current portfolio of $990 million. 46 percent of the portfolio falls to the transport sector, 16 percent - to the energy sector, 36 percent - to city services, that is, improvement of water supply, sanitation, and so on.
In 2012, the Bank approved projects worth $250 million, all of which were in the public sector.
According to the updated business plan of the bank's operations in Azerbaijan for 2012-2014, the total amount of funding for approved ADB projects in Azerbaijan in this period will amount to $575 million. Projects approved under the business plan, as expected, demanded $250 million in 2012. $155 million is expected in 2013 and $170 million in 2014.
Of ordinary capital resources, the Bank plans to allocate $155 million annually between 2012 and 2014. In case of need, the possibility of providing additional resources for funding and co-financing will be considered. The bank plans to allocate $3.25 million for technical assistance in 2012-2014.
Azerbaijan has been a member of the ADB since 1999.
The ADB was established in 1966 and has 67 members. The headquarters of the bank is located in the capital of the Philippines, Manila. Azerbaijan became a member of the Asian Development Bank on December 22, 1999. The country's participation share in the bank's capital is 0.5 per cent.
ADB's leading shareholders are Japan and the US (31.2 per cent of the total share capital), India and China (12.8 percent), and Australia, South Korea and Canada (16 percent).