WB increases amount of additional funding for one of projects in Azerbaijan

Business Materials 15 June 2016 17:37 (UTC +04:00)

Baku, Azerbaijan, June 15

By Azad Hasanli - Trend:

The Board of Directors of the World Bank (WB) will consider the issue of allocating $66 million June 17, 2016 as part of the additional funding for the IDP Living Standards and Livelihoods Project in Azerbaijan, Larisa Leshchenko, head of WB Baku office, told Trend June 14.

Leshchenko said that additional funding will be fully provided by the WB and the Azerbaijani side will pay the value added tax.

Earlier, the WB planned to additionally allocate $50 million for the project to improve the well-being of internally displaced people in Azerbaijan. Some $28.53 million more were planned to be provided by the government. Moreover, the issue was to be considered July 13, 2016. However, apparently, the bank decided to accelerate the work in this direction.

The project was to be implemented in late 2016, but the project is currently expected to be extended until December 31, 2020.

The additional funding envisages the expansion of areas for the micro-loan issuance. These micro-loans are planned to be issued for repair or restoration of the main infrastructure (water supply, electric power supply, drainage systems); repair or restoration of social infrastructure (schools and health facilities).

Moreover, the maximum amount of a micro-loan is expected to be increased from $250,000 to $300,000 as part of additional financing. As before, the communities of internally displaced people must pay three percent of the total value of the project.

This is the third IDP Living Standards and Livelihoods Project, which is being implemented by the WB in Azerbaijan.

Azerbaijan joined the WB in 1992.