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World Bank loan for healthcare to be increased

Business Materials 7 February 2006 19:36 (UTC +04:00)

Negotiations on preparation of the new project for the Azerbaijan health system reforming, which funding will be performed by the World Bank, have come to an end, the government told Trend . Discussions have been held with the banks mission headed by the public health expert and the project director Enis Barysh, Trend reports.

Due to its enlargement its cost may increase by the proposal of the Health Ministry. Respectively, the size of the loan may also change, from the earlier proposed $50 million to possible $60 million.

The World Bank is ready to increase the loan but to what extent will be defined ultimately after the banks assessment mission visit to Baku in March. There is a necessity in it, as the project assessment has been held some years ago, and building materials, equipment have become more expensive since then. The project enlargement is envisioned due to the plans

for constructing hospitals in some pilot areas (5-10) for the population from the regions not to flow together to the capital city. And liquidation of old hospitals with their vacant beds is considered expedient. The Health Ministry proposes also to include construction of policlinics in rural areas as well.

The project preparation works are currently underway, for which purposes the World Bank allocated a grant of $450,000.

The government hopes to receive credit resources on preferential conditions through the International Development Association, however, mixed crediting by the World Bank is not excluded too, part of which will be through the International Bank for Reconstruction and Development.

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