JBIC to Finance Agriculture Program in two Azerbaijani Districts
Azerbaijan, Baku / corr Trend I.Khalilova / The Japanese Bank of International Cooperation will launch the development of a program to upgrade agriculture in Isamayili and Shamakhi, on 10 September, the Cabinet of Ministries announced. A JBIC mission will pay its first visit in this regard.
The program will be developed through the JBIC grant. JBIC is committed to submit the program to the Government of Azerbaijan by March 2008.
The program will include all measures for the development of the non-oil sector in these cities and necessary amount for financing. Later the financing sources for comprehensive development of agriculture sector in Ismayili and Shamakhi, and also some the possibility to submit to JBIC a privileged loan program or further implementation.
In spring of 2006, the Governments of Azerbaijan and Japan signed an agreement for technical assistance at the expense of the JBIC funds. Major fields to benefit the technical assistance from the JBIC are the small and medium-scale entrepreneurship, water sector, energy (establishment of alternative energy sources).
Presently the largest amount of finances for the projects in Azerbaijan has been presented by the JBIC. In addition, the gross amount of the Bank's investments to the energy projects in Azerbaijan amounts to $700 mln. The credits have been provided for 40 years under a payment delay of 10 years and interest rate of 0.75% per year.
Moreover, the Japanese Government has granted $20mln to purchase agricultural equipment and it was spent for the supply of 1,000 agriculture devices. Every year the Japanese Embassy in Azerbaijan allots a total of $1mln for the rehabilitation and construction of new schools. Their total number is 20.