On Tuesday the World Bank (WB) approved additional financing for the Azerbaijan Rehabilitation and Completion of Irrigation and Drainage Infrastructure Project (RIDIP) in the amount of US$5 million equivalent, the WB announced, The provision of additional financing is in response to the Government's request to help cover the increased cost of the project due to the rising price of construction materials and fuel, as well as the more than originally estimated rehabilitation needs, and will add to the original.
US$42 million credit from the International Development Association for the project for 35 years, including 10-year grace period under the interest of 0.75%.
More than 80 percent of all arable land in the country is equipped for irrigation. Many of the irrigation systems were developed during the former Soviet Union period with little or no attention to economic costs and viability.
The project also supports the completion of construction of the Mil-Mugan Collector Drain to reduce water logging and salination in the central and southern agricultural regions of the country. The works under this activity are also well advanced.
Azerbaijan joined the World Bank in 1992. Since then, commitments to the country total approximately US$930 million for 30 operations.