WB may return loans saved on IBTA-2

Business Materials 13 December 2005 16:55 (UTC +04:00)

Till the end of 2005 the issue of using the funds saved in the framework of the second World Bank (WB) project "Тechnical assistance to the institutional building of Azerbaijan” (IBTA-2) will be finally solved. The talks on the issue are currently held with the WB mission headed by the bank’s senior economist and the IBTA project manager Christos Costopulos, as well as the country’s regional director Donna Dowsett-Coyrolo, the project implementation team told Trend.

According to estimations of the bank and the government of Azerbaijan, some $4‚5 million have been saved in the project from the $9‚45 million loan. From this amount $180,000 have been allowed for the institutional intensification potential by the bank through improving the legislation in accountancy and audit. The component’s performer will be the Finance Ministry.

The remaining credit funds saved are proposed to be returned to the bank. However, the government is not willing to part with the WB privileged credit resources and proposed a number of components for incorporating them into the project. There are proposals on developing the new tax regime for the state-owned oil companies, enhancement of the control and efficient use of budgetary funds, as well as for improvement of the budget legislation. Part of the funds was also proposed to the Ministry of Ecology for cleaning of the oil-polluted areas on the Apsheron peninsular, and etc. They have been selected by the government, however, the bank does not yet give its consent for financing. The project implementation team does not rule out the possibility of renewing the list of proposals.

By approval of the IBTA-2 project in 2002 costing 7‚470 million SDR it constituted $9‚450 million in USD. Now it makes $11 million.