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AZERI GOV’T APPEALS FOR OPEC FINANCING

Business Materials 24 June 2005 13:08 (UTC +04:00)

The Azerbaijani government appealed to the OPEC Fund with request to finance a project on �Development of the Northeast regions of Azerbaijan� of the International Fund for Agriculture Development (IFAD). The government told Trend in 2004 the Fund declined the appropriate inquiry, as it might annually finance only 1 project in the country (then the property will be given to the road project).

In 2005 the government anew appealed to the OPEC Fund with request to grant $6m

for irrigation work. A credit agreement with IFAD can be signed following the approval by the Fund.

The total budget of the project is $25m, with $3m to be allocated by the Azerbaijani government. IFAD will approve $14.5m with annual rate of 0.75%, while $7.5m might be provided by the OPEC Fund. The Fund is ready to open financing with 2.5% per annual, whereas the government does plan to attract the funds at 0.75% per annum. The project will be implemented in the northeast Azerbaijan. Some $10m will be directed at melioration work, $6m вЂ" at establishment of the association of water-users, $5m вЂ" at crediting, while the remainder вЂ"at maintenance of working group. The project will be implemented in Khizi, Siyazan, Davachi and Absheron Districts.

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