ADB ready to invest in electricity sector of Azerbaijan
Baku, Azerbaijan, Sept.30
By Maksim Tsurkov - Trend:
The Asian Development Bank plans to allocate $140 million on the development of energy sector in Azerbaijan over 3 years, stated the bank's new strategy of cooperation with Azerbaijan for 2014 - 2018, approved by the ADB Board Sept.30.
"These loans are provided for 2015-2017 and aimed at the support of the development of renewable energy sources in Azerbaijan, which contributes to the diversification of energy sources and the use of wind, solar, hydro energy, biomass and others," said the strategy.
ADB plans to implement a pilot project on renewable energy in order to assess the capacity of public and private investment in this area.
ADB is also ready to consider the possibility of financing the investment program to improve the efficiency of the transmission and distribution of electricity.
"ADB will continue its dialogue with the government on the issue of tariffs and facilitate reforms in the energy sector of the country. Bank is assisting the government of Azerbaijan in order to develop a master plan for the energy sector, determine investment priorities, assess the tariff system and optimize financial resources," the document says.
The electricity consumption will rise to 99.9 percent of the population by 2020 (compared to 85 percent in 2011) and will amount to 2500 kilowatt / hours (compared to 1650 kilowatt / hours in 2011). The total revenue from the sale of electricity will increase to $900 million by 2018 (compared to $862 million in 2011), while CO2 emissions will be reduced to the level of 24,000 metric tons per year by 2020, according to the bank's forecasts.
As part of the strategy, the bank plans to allocate $752 million for infrastructure projects in the areas of transport, energy, water supply and other urban utilities and services, while some 18.6 percent will be allocated to finance the energy sector.
ADB was established in 1966 and has 67 members. The bank's headquarters is located in the capital of the Philippines, Manila. Azerbaijan joined ADB on December 22, 1999.
The country's share in the bank's capital is 0.5 percent. ADB's leading shareholders are Japan and the United States (31.2 percent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent).
ADB has provided Azerbaijan a total of about $1.64 billion for the implementation of 20 projects for the entire period of cooperation, according to the data for the end of 2013.