Azerbaijan, Baku, 30 May / Trend corr. U.Ismayilova / The additional $1.5mln allocated by the World Bank (WB) for the project "Development of social protection in Azerbaijan" will be directed to upgrade the pension system of the country, Elnur Sultanov, Head of the Department on International Relations at the Labour and Social Protection Ministry of Azerbaijan, stated on 30 May.
"The pension system is expected to be extended until 2010 within the framework of the project," Sultanov said.
The WB Council of Directors has approved the project "Development of social protection in Azerbaijan" and increased the sum of privileged loan from $25mln to $26.7mln. As a result, the cost of the project has increased from the previous $47.4mln to $54.6mln. Under the agreement, WB will alocate the money on the conditions of the International Association of Development (35 years with previliged term 10 years and 0.75% per year).
The project includes four compenents -modernize labour market ssytem, upgrade labour legislation, labour protection system and engagement service system; form social security system; modernize pension system and to manage the project.
The project promotes entire institutional development and modernization of professionals training system on the basis of European experience. A special training centre is expected to be created at the Ministry.
The project will cover 2008-2013. The WB has already financed one project
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