Along with the conclusion of agreements on new joint projects the Azerbaijani government and the World Bank are concluding the use of the old credit program on Institutional Building Technical Assistance (IBTA-2). Following the completion of the IBTA-2 project on 30 June 2006, a management team of the project will also be broken up, as restructured part of IBTA-2 credit ($5.14), which is directed at fighting with the bird flu, was given to management of the State Agency for Rural Credits.

The IBTA-2 project was adopted on 19 June in 2002. $5.1 million is left unspent from the total 7.470 SDR ($10.6m) allocated for IBTA-2.

The components of the project include the treasury automation, assistance in the implementation of the law on State Purchases, upgrade of the Accountancy Chamber, monitoring of expenses for poverty reduction, development of state investment program, provision of transparency and financial discipline in the communal sector, improvement of business-climate, payment of consults services in privatization of water and gas supply system.

The remainder of the credit resulted due to refusal from the implementation of some components of the project, including the legal consultations on privatization of the water and gas supply system, consultations on improvement of the business climate, development of employment strategy. Thus, despite the initial budget of IBTA-2 was adopted in the amount of 7‚470m SDR was $9‚450m in 2002, it now comprises over $11, due to difference in rates of the USD and SDR.

The sides did not easily came to a conclusion that the saved money should be directed at fighting with bird flu. Earlier the World Bank proposed to return the saved part of the credit. However, the government then was unwilling to depart with the privileged credit resources and proposed to inject some new components in the project. The proposals concerned the development of a new tax regime for sate oil companies, strengthening of the control and rational use of budget funds, as well as improvement of the budgetary legislation.

Part of funds will also be directed at the establishment of the electron government and in this case the Ministry of Communications and Information Technologies. Another part was allocated for the Ministry of Ecology and Natural Resources on treatment of the oil and gas polluted area in Absheron peninsular. The Accountancy Chamber of Azerbaijan was also among the beneficiaries of the project on Technical Assistance to Institution Development. In March 2004 the consultants of the Australian alliance IDP/Stanton Partners held annual consultations under IBTA-II and they asserted that opinion on the necessity of conduct of structural changes. $803,000 were directed in this respect, whereas $80,000 was allocated for the establishment of the communication system with the Accountancy Chamber.

These directions were selected by the government, however, the bank did not give its approval for financing. It was the WB to take the final resolution. Early 2006 the government differed for its abruptness, refusing from the use of the funds and was going to return them to the bank. The governments logic is clear in general: to make the cooperation with the bank very applicable, getting rid of loans for technical assistance which in mid-1990s were needed as natural accompany for difficult infrastructure projects. To be strict, the government considered necessary to update the program on cooperation, supplementing it with new projects, which the budget is no condition to finance.

The resolution of the government was a fire without warning for the World Bank. The WB experts were indignant on the governments resolution on refusal from privileged credits, on condition that further the country will receive in the limited amount and take credits on commercial terms. Thus, talks on perspectives of IBTA-2 were conducted over the second half of 2005 first quarter of 2006. The unanticipated situation relaxed the situation: in connection with the danger of bird flu the government refused from an idea of cessation of the project and went to restructuring of the vacant part of the credit.

Late this March the Board of Directors of the World Bank approved $5.1m for Azerbaijan for prophylactics and fighting with bird flu. The WB funds will be directed at the improvement of the veterinary service and human health provision. It is planned to strengthen measures on diagnosis, observation over sick animals, development of mechanisms on payment of compensation to poultries. Moreover, it is also planned to purchase necessary equipment and medicine for conduct of observation, diagnosis, medical services to population. The money will be directed at increase of pubic awareness about bird flu related risks, as well as expenses linked with the management of this product. Thus, the credit is allocated for strengthening of technical basis of the State Veterinary Service and 75% of all funds will be spent on purchase of equipment.

The project is part of projects for emergency situations and was developed too fast and adopted in the shortest period. The project is private and independent, while Ministry of Agriculture is the project beneficiary. The State Veterinary Service of the Agriculture Ministry said that the World Bank has set up preparations for the tender on distribution of contractors within the framework of the project. In its turn the State Veterinary Service has submitted to the WB a list of necessary equipment and medicine.

As a result, the project on Institutional Building Technical Assistance covered only 4 out of 10 components. They include; strengthening of the state management, control over the state financial expenditures, reforms of social expenditures and project management.

The State treasury of Azerbaijan is finishing automation of regional offices, Trend reports with reference to officials of the workgroup for WBs IBTA-II project. This automated system is put in operation by the end of 2006, preceded by wide-scale training of personnel. In the aims of the project USAID issued a $2.9mln grant for software purchase. Hardware is purchased at IBTA-IIs funds of $2.85mln. In general, the treasury automation costs some $6mln. Connecting treasurys head office to 86 regional offices ensures control over target use of budget funds and allows define priority-driven spheres for budgetary financing.

Iranian gov't provides data on guaranteed wheat purchases
Iranian gov't provides data on guaranteed wheat purchases
Iran's has low foreign debt ratio - Deputy Minister of Economy
Iran's has low foreign debt ratio - Deputy Minister of Economy
Iran shares data on imports of basic goods
Iran shares data on imports of basic goods
Loading Bars
State Oil Fund of Azerbaijan unveils budget revenues and expenditures
Azerbaijan's Central Bank talks images of new manat banknotes appearing on social media
Azerbaijan discloses area of liberated lands sown with wheat in Aghdam
Azerbaijan confirms 632 more COVID-19 recoveries
Azerbaijani, Georgian FMs exchange views on latest situation in region
Period of revival of previously occupied Azerbaijani lands already began - ambassador
Denim production to be launched at textile enterprise in Uzbek Bukhara region
Azerbaijani expert talks future plans for import of hydrogen vehicles
Georgia - one of largest beneficiaries of EBRD investments per capita
USAID provides comprehensive support to entrepreneurship dev’t in Turkmenistan
French Proparco provides Georgian hospitals with grant to support COVID-19 battle
Uzbekistan to make strengthening relations with states of Central Asia priority
Georgia to establish blackberry plantation via state program
India’s role in combating COVID-19 through vaccine development and manufacturing
Russian Gazprombank expecting Azerbaijani sovereign rating's return to 'stable' outlook
Support for revival of Nagorno-Karabakh must become way of life – Azerbaijani minister
Tesla Israel headquarters nears completion
Armenian soldiers demanding compensation for participation in Karabakh war
Azerbaijan shows footage from Yukhari Abdurrakhmanli village of Fuzuli (VIDEO)
Azercell is always leading with its exemplary service quality
Uzbekistan may consider temporary suspension of yarn exports
Georgia reveals volume of domestic debt
Walmart expands vaccinations in boost to U.S. COVID-19 program
Israeli company eyes creating lavender plantations in Uzbek Namangan region
Georgia reveals volume of imported oil bitumen
European standard bakery to open with support of Bank of Georgia
Kazakhstan investing in Georgia across wide range of economy spheres
Georgia sees decrease in import of aviation fuel
Azerbaijani president declared Karabakh status issue - thing of the past, MFA says
Dagestan starts exporting ceramic products to Azerbaijan
Georgian RMG Gold company's total sales increase
Demand for notes of Central Bank of Azerbaijan exceeds supply
Assessment of damage caused by Armenia to Azerbaijani civilian objects continues
Volume of cargo passing through Astara terminal increasing from year to year
Criminal case opened against more terrorists used by Armenia against Azerbaijan
National Bank of Kazakhstan determines strategic initiatives for 2021
Bukhara oil refinery produces floating pontoons to eliminate loss of light hydrocarbons
Azerbaijan establishes Agency for Development of Economic Zones
Azerbaijan developing employment programs for future residents of liberated lands
Georgia decides to increase subsidies for flour
UK can help Azerbaijan to demine liberated lands - ambassador
Azerbaijan, UK discuss issues of development of co-op in area of defense
EU, FAO supporting agriculture and rural development in Georgia
Automated warehouse system introduced at Uzbekneftegaz JSC
Projected volume of trade turnover between Turkmenistan, US for 2021 named
Kazakhstan's monetary base surges in value in Dec. 2020
Uzbekneftegaz manages to reduce imports of materials, technical resources
Elon Musk to offer $100 million prize for 'best' carbon capture tech
Kazakhstan boosts petroleum oil exports to Spain despite COVID-19
Georgia to restore operations of municipal transport, schools and stores
Application of TRACECA single transit permit digitalizes transport and logistics sector
Azerbaijani gymnasts to take part in European Championships in Switzerland
Kazakhstan deregulates tanker call-in services for oil crude, products export
Azerbaijan's energy company building new substation in liberated Shusha (PHOTO/VIDEO)
Regular flights to resume from February 1 in Georgia
PASHA Bank's branch in liberated Shusha to help implement territories' restoration initiatives
Nar offers special discounts for Karabagh war veterans
Austrian Enhanced Resource Company talks about work plans in Azerbaijan for 2021
Azerbaijani banking community eyeing dev't of entrepreneurial ecosystem in liberated territories
German government sees 2021 GDP growth of 3%
Kazatomprom completes COVID-19 testing at its JV with French Orano
Introduction of Euro-5 diesel standard postponed in Georgia
Azerbaijan studying Turkey's experience to create liberal electricity market
Baku Higher Oil School holds discussions on ‘Natural resources of Karabakh’ (PHOTO)
Volume of vegetable oil imported by Turkmenistan from EAEU revealed
Major foreign companies to support logistics and fulfillment center creation in Kazakhstan
Volkswagen operating profit drops by half in 2020
Azerbaijan discloses commercial banks' total share in GDP
Azerbaijan-Turkmenistan co-op development serves economic well-being of region - MP
Georgian government's action plan has direct, clear priorities - PM
Demand for dairy products of EAEU countries increases in Turkmenistan
Cotton fiber production increases in Uzbekistan
All preventive measures to be taken in connection with COVID-19 at Azerbaijani schools
Public Council under Azerbaijani Ministry of Ecology to assess damage in liberated lands
Azerbaijan's PASHA Bank talks government initiatives for restoring liberated territories
Passenger traffic of Georgian airports significantly down
Tutoring activity may be resumed in Azerbaijan soon - minister
Turkmenistan increases import of flour from EAEU
China's CEIC, China Reform set up $1.55 billion new energy fund
Uzbekistan reduces gasoline production
Azerbaijan shows footage from Gargabazar village of Fuzuli district (PHOTO/VIDEO)
Greenhouses construction underway at agro-industrial complex in Uzbek Bukhara region
Uzbekistan, Ukraine talk diversification of mutual trade
Uzbekistan’s mining and metallurgical complex eyes increasing its authorized capital
Turkmenistan's fruit imports from EAEU increased
Azerbaijan to continue TV lessons until end of academic year
Minister talks possible date of kindergartens opening in Azerbaijan
Education minister talks epidemiological situation in Azerbaijan
Russia bans import of tomatoes from more Azerbaijani producers
Armenian opposition rallying in front of parliament building
Hungary PM says too early to talk about lifting COVID-19 restrictions
Education in Azerbaijani schools to begin in stages from February 1
Georgia reports 903 new cases of coronavirus for Jan.22
Kazakhstan's Kazakhmys boosts metals output, reveals plans for 2020
UK keeping its borders open for now - environment minister
Issue of banning tomato imports from Azerbaijan to Kazakhstan under review - Azerbaijani FDA
Restrictions imposed by Kazakhstan on import of tomatoes from Azerbaijan - temporary, says Kazakh Ministry
Results of Second Karabakh War hard to accept for Armenia, says Russian expert
Azerbaijan names amount of compensation paid to closed banks' depositors
Kazakhstan boosts 2020 passenger cars manufacturing despite COVID-19
All news