Last week review (Aug. 22-26)
ADB approves multi-million loan to Azerbaijan
The Asian Development Bank (ADB) has approved the fourth tranche worth $75 million as part of the ‘Azerbaijan: Water Supply and Sanitation Investment Program’, said a message posted on the bank's website. According to the message, the first three tranches of the multi-tranche financing facility (MFF) financed construction of water networks in Goychay, Agdash, Beylagan, Agjabadi, Nakhchivan. The fourth tranche will be used to complete work in Agdash and Beylagan towns. According to the message, water supply system efficiency will be improved through rehabilitation and replacement and coverage expansion in Agdash sewerage. The sanitation system efficiency will be improved through construction and coverage expansion in Agdash and Beylagan towns, the message said. The total cost of the work is $100 million. The Azerbaijani government will provide some $25 million for the project implementation.
ADB postpones loan allocation for North-South project
The Asian Development Bank (ADB) has postponed the consideration of allocating a $200 million loan for implementation of the International North-South Transportation Corridor project, as well as for development of Azerbaijan’s railway sector, till the next year, said an ADB message on its website. Earlier, the bank’s management planned to hold the project’s overview on Dec. 12, 2016, however, this period has been currently postponed till Apr. 15, 2017. The infrastructure rehabilitation of the North-South railway envisages the repair and rehabilitation of 441 kilometers of single track between Baku and Yalama, the development of computerized freight operation management system and consulting service support to project implementation.
TANAP pipeline's construction in line with schedule
The work on construction of the Trans Anatolian Pipeline (TANAP) continues in line with the schedule. It was noted during the meeting of the TANAP Consortium’s management that was dedicated to the results of the first half of 2016 and the upcoming tasks, said a message from Azerbaijan’s state oil company SOCAR posted on its website. SOCAR President Rovnag Abdullayev was on a visit to Turkey. After the meeting, Rovnag Abdullayev met with Turkey’s Minister of Energy and Natural Resources Berat Albayrak. The minister spoke about the status of projects implemented in Turkey and planned activities.
Winemakers Association to be established in Azerbaijan
The Winemakers Association will be established in Azerbaijan, the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) said. According to the message, the decision was made at a meeting between AZPROMO management and the representatives of local companies engaged in the wine production and sale. The activity, aimed at promoting local wine export, as well as the offers of the companies, operating in this field, were discussed at the meeting, the message said.
Fitch Ratings: Azerbaijan to keep social, political stability
Fitch Ratings assumes that Azerbaijan will continue to experience broad social and political stability and there will be no prolonged escalation with Armenia regarding the Nagorno-Karabakh conflict to a level that would affect economic and financial stability, according to the agency’s report posted on its website. Fitch Ratings has affirmed Azerbaijan's Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'BB+'.
The issue rating on Azerbaijan's senior unsecured Foreign-Currency bond has also been affirmed at 'BB+'. The Country Ceiling has been affirmed at 'BB+'. The Short-Term Foreign- and Local-Currency IDRs have been affirmed at 'B' and the issue rating on Azerbaijan's senior unsecured Short-Term Local-Currency bond has been affirmed at 'B'.
Azerbaijan's 'BB+' ratings balance a strong external balance sheet and low government debt, stemming from previous years of high oil revenues, according to the agency.
McKinsey to develop road map for Azerbaijan's economy
Azerbaijan hired McKinsey & Company, a worldwide management consulting firm, to develop a road map for the country's economy to 2025 and beyond, the Financial Times reported. “We were expecting to enter the post-oil era in about 10-15 years, but we have practically found ourselves in that situation already today,” Financial Times quoted Natiq Amirov, Azerbaijani presidential aide on economic reforms, as saying.