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WB Begins Talks on Ecologic Development Program in Azerbaijan

Oil&Gas Materials 28 April 2008 14:39 (UTC +04:00)

Azerbaijan, Baku, 28 April /corr. Trend I.Khalilova / Today official talks commenced in Baku between the World Bank (WB) and Government of Azerbaijan with regards to the second stage of the long-term program on clean-up of Absheron peninsula totaling $349.5mln, a source at WB Baku representation said. The bank's mission headed by Ani Dasgupta is on a visit to Baku to hold the talks.

The WB is ready to allocate $166.5mln for the realization of project on conditions of the International Bank for Reconstruction and Development (IBRD) for a period of 17 years, with four years grace period and libor+0.05%.

The project has been divided into four components which cover various State bodies - State Oil Company of Azerbaijan, Ministry of Emergency Situations, Ministry of Economic Development, Ministry of Ecology and Natural Resources.

The first component envisages acquiring clean-up equipment for SOCAR. In addition, technical assistance is expected to be rendered to increase ecologic practice of SOCAR, especially preparation and implementation of strategy and policy in this regard. This component will be financed with $61mln allocated by IBRD for purchase of the equipment and $124mln by SOCAR to cover expenses on exploitation of equipment, payment of the workforce.

According to the second component, the Emergency Situations Ministry will be rendered assistance in clean-up of the territories of former iodine production plants in Ramani and Surakhani from radiocarbon coal. During the Soviet period, these plants produced iodine by filtering underground water from oil wells of coal granule. At present, these granules are collected and radiocarbon water emerged from the filters. WB will allocate funds for utilization of the plants. The second assistance to the Ministry envisages physical purification of the oil pollutions near the territories of the Airport of 1,000 hectare. Initially the IBRD will allocate $74mln and the Government $25mln for these measures.

The domestic wastes control system is planned to be created in the line with the Economic Development Ministry, and improvement of ecological norms, standards, as well as certification of the system by the Ecology and Natural Resources Ministry. The bank stands ready to provide $31.5mln for this purpose and the Government of Azerbaijan will cover $34mln.

The correspondent can be contacted at: [email protected]

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