Islamic Development Bank Postpones Adoption of New Program on Cooperation with Azerbaijan
Azerbaijan, Baku / corr Trend I.Khalilova / The Azerbaijani Cabinet of Ministers has presented a new program on cooperation in 2007 - 2009 to the Islamic Development Bank (IDB). The program includes 10 projects with the total budget of $200mln, the Government said.
Three projects are offered for technical assistance. It includes the development of a feasibility study of the project to reconstruct the Mil-Karabakh voter collector and consolidation of the State Committee on State Property Management. To implement the other projects, there are plans to receive financial assistance from IDB.
The approval of the program by IDB depends on the data on projects to be provided by the ministries and departments.
The projects selected cover the construction of significant roads, power engineering, melioration (reconstruction of the Mil-Karabakh collector), improvement of the water supply and sewerage system of small towns.
The IDB's previous conditions have been maintained and Azerbaijan can receive one privileged, two commercial credit and one or two grants a year from the bank. The projects were defined from this aspect. The amount of privileged financing for the country is considered to be less than it was before. This is explained by the economic growth rate of Azerbaijan.
The program amongst IDB and Azerbaijan is revised every year, because it gives the right to determine priorities and inject changed in the program. The bank has not experienced this because of ongoing developments of a new program. After coordination of the agreement with IDB, the relevant work will begin, the bank's missions will visit Baku to evaluate concrete projects and if necessary, to design a feasibility study.
Only 4 projects were financed by the bank in Azerbaijan on commercial conditions in the amount of $61mln. They were directed on the construction of the Alat - Kazimagomed, Mingechevir electric power station, the Ujar-Evlax road and the Xachmaz substation.