Azerbaijan declines IBRD finances for agricultural project

Business Materials 18 April 2006 14:23 (UTC +04:00)

The World Bank mission headed by the agriculture expert, Frauke Youngbloot will continue evaluating the second phase of the adapted program of development and crediting of agriculture in Azerbaijan. In comparison to the first phase of the program the second one will be financed via different financing sources (WB structural divisions), WB Baku office manager, Saida Bagirli told Trend.

$20, 7m will supposedly be provided by the International Development Association (IDA). The country was first offered financing by stricter IDA conditions; for 35 years with payment delay for 10 years and libor rate -2%. Considering that libor rate is currently 5% these means will have 3% of annual percent. $1.6m will be provided by the Japanese government grant. It was also planned to use $7m of International Bank for Development and Reconstruction, however, in the course of talks government decided to decline this source. This part of the sum will be provided by the government itself. The total governmental share in the project is $5. 7m and it can be increased to $12. 7m. the exact cost of the project is still in the state of verification.

Project also includes expansion of the informational- consulting services, development of veterinary practice and state veterinary service, modernization of agricultural researches and project management. Besides, some beneficial credits will be provided to support the credit unions and grants to support the small business development. The non-beneficial financing means might be allocated to support the agricultural enterprises. Commercial banks will be attracted to finance these resources.