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Aggregate value of WB new strategy for Azerbaijan depends on increase of bank's capital

Business Materials 8 April 2010 18:47 (UTC +04:00)

Azerbaijan, Baku, Apr. 8 / corr Trend N.Ismayilova /

Aggregate value of the World Bank's new four-year Country Partnership Strategy for Azerbaijan depends on a decision on increase of bank capital, Gregory Yedzheychak, head of the WB Baku Office, said Apr. 8.

"We are considering an opportunity of allocating to Azerbaijan some $250 million a year, which will comprise $1 billion in total for four years. However, the final cost will depend on a decision on increase of the WB capital, which will be taken at a spring annual meeting," Yedzheychak said.

The sprig meeting of the IMF and the World Bank group will be held in Washington on Apr. 24-25.

According to Yedzheychak, WB is expected to approve a new strategy of cooperation with Azerbaijan (Country Partnership Strategy) in September.

"We have contours of strategy for the first and second years of its realization. A concrete decision on draft strategy will be achieved approximately in mid-May," Yedzheychak said.

The key objective of the bank is to continue the successful projects in road construction and agro-industrial development.

The Bank is preparing to approve about five new projects in road construction (road Baku-Shamakhi), ecology(construction of deepwater outlet of sewerage flows from the Hovsani aeration station in the Caspian Sea), education (reform of higher education system), and is likely to continue a project on improvement of water supply and sewerage system through enlarging list of small cities.

In 2009 the Bank approved funding for two projects to improve roads Hajigabul-Bagramtepe and the quality to implement investment projects in key sectors, especially in infrastructure development, totaling $183 million. In 2008 funding of 13 projects worth $1,251 billion was approved. The budget strategy was distributed for four years during two years. The World Bank expressed its readiness to allocate Azerbaijan more than $1 billion more for the next two-year strategy (2009-2010).

The World Bank has been cooperating with the Azerbaijani government since 1992, when Azerbaijan joined the World Bank. The Bank has financed 52 projects worth $2.7 billion.

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