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ADB to help Azerbaijan to ensure participation of private sector in field of electricity

Oil&Gas Materials 5 February 2014 11:47 (UTC +04:00)

Baku, Azerbaijan, Feb. 5

Trend - A. Akhundov

The Asian Development Bank intends to give Azerbaijan assistance on working out a legal framework for participation of the private sector in the sphere of electric power. Technical help in the amount of $500, 000 dollars will be given in 2014, the business-plan on operations of the bank in Azerbaijan for 2014-2016 announced on its website on Feb. 4.

Bakielektrikshebeke in the capital and Azerenerji in other territories of the country are engaged in production and distribution of electrical energy.

According to the ADB's forecast by the year 2020, 99.9 percent of the population, versus 85 percent in 2011, will have access to electric power. By 2018, the consumption of electricity per capita will increase to 2500 kilowatt / hours (1650 kilowatt / hours in 2011) and the total income from the purchase of electricity will reach 900 million dollars (862 million dollars in 2011). Gas emission into the atmosphere will be reduced by 24, 000 tons.

The Asian Bank of Development also intends to give Azerbaijan $40 million dollars for the development of alternative and resumed sources of energy in 2015, according to the business plan. This money will be directed to the implementation of two pilot projects on processing of biomasses with the capacity of 16 megawatts for the effective supply of electricity and heat to the districts of Oguz and Agjabedi.

The Bank is ready to give the first credit within the framework of the Power Distribution Investment Program for the development of distribution of electric power in Azerbaijan in 2015 or sooner. At a total cost of $133 million dollars, the Asian Development Bank is ready to give $100 million dollars in financing for the project while $33 million dollars will be provided by Azerbaijan.

The ABD was founded in 1966 and has 67 members. The head quarters of the bank are located in the capital of the Philippines - Manila. Azerbaijan became a member of the ADB on December 22,1999 and its share in the bank's capital is 0.5 percent.

The ADB's leading shareholders are Japan and the United States (31.2 percent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent), and so on.

Translated by R.A.

Edited by C.N.

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