World Bank (WB) received proposals from the Ministry of Labor & Social Protection of Population of Azerbaijan regarding the creation of a corporative network at the Ministry within the framework of the application of the State addressed social aid.
Corporative network is offered on application within the credit of WB for pension and social reforms in Azerbaijan, the Head of the Project Group Elnur Sultanov told Trend. The proposal envisages creating a server and a global network to carry out and conduct the monitoring of social aid.
According to Sultanov, data collection in a single server will ensure the transparency of giving addressed aid that began in 1 July, 2006. The construction of the server is scheduled for the end of 2006, and a company has already been selected. Global System will be created within 2007-2008 that will allow the Ministry to join the electronic government created in Azerbaijan.
The project equals $15.8 million in aggregate, and the WB has disbursed $10 mln. The project will be implemented by the Ministry of Labor & State Fund for Social Protection of Population of Azerbaijan. The first one implies upgrading the system of managing the social aid. The right of receiving will be defined within the social program. $5 mln out of the WB credit and $2.9 mln from the State Budget will be directed towards provision of pension.
The second component is intended to improve the system of managing social insurance. Nearly $8 mln has been intended for the social reforms, with $5 mln at the expense of WB credit, $800 thousand - UNDP and the remaining part state budget and State Fund.
The third component includes management of the project, monitoring and assessment.
The credit agreement between Azerbaijan and WB on creation of network was signed on 23 September 2004. The agreement came into force in January. WB has allocated $10 mln to Azerbaijan for 35 years and with 10 years period of grace, and annual interest rate of 0.75%. The credit was confirmed by the WB Council of Directors on 10 June, 2004.