BAKU, Azerbaijan, June 7. International financial organizations and development agencies conducted 539 sovereign financing operations in Azerbaijan, amounting to a total value of $7.6 billion from 2008 through April 1, 2024, Head of Socioeconomic Analysis and IFIs and Chief Economist Group at the Eurasian Fund for Stabilization and Development (EFSD) Artem Levenkov told Trend.
According to him, Azerbaijan recorded 16 sovereign financing operations totaling $68.4 million in 2023 alone. The European Bank for Reconstruction and Development (EBRD) was the primary provider of funding, contributing $60 million. Projects in the transportation sector predominated.
“Since 2008, Azerbaijan has secured $7.6 billion in approved financing, with transportation ($2.7 billion), water supply ($1.7 billion), and public administration and economic policy ($1.3 billion) emerging as the key sectors. The Asian Development Bank ($2.9 billion), the World Bank ($2 billion), and the EBRD ($800 million) lead among international institutions,” he added.
Levenkov highlighted that the most significant project by an international financial institution (IFI) in Azerbaijan is the EBRD M2/E60 highway modernization initiative. This project, integral to the TRACECA corridor and a vital international trade route for Azerbaijan, is pivotal for the country.
“This highway is a crucial component of the government's strategic plan to modernize the national road infrastructure, foster economic development in regions beyond Baku, and enhance international trade, connectivity, and integration into the global economy,” he emphasized.
According to EFSD, the highest number of operations in Azerbaijan occurred in 2021.
To note, EFSD's sovereign financing database encompasses 11 Eurasian countries and details operations funded by 10 international financial institutions, including the International Monetary Fund (IMF), World Bank (WB), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), New Development Bank (NDB), Islamic Development Bank (IDB), Eurasian Development Bank (EDB), and the EFSD itself.
Additionally, the database includes six development agencies: the French Development Agency (AFD), the German Agency for International Cooperation (GIZ), the Japan International Cooperation Agency (JICA), the Swiss Agency for Development and Cooperation (SDC), the Turkish Cooperation and Coordination Agency (TIKA), and the United States Agency for International Development (USAID).