Baku, Azerbaijan, April 26
By Ilaha Khalilova - Trend:
An additional $86.56 million is required for the continuation of the World Bank`s second Azerbaijan Rural Investment (AzRIP-2) project.
The share of the bank`s additional funding will make up $ 50 million, and the remaining $36.56 million will be provided by the Azerbaijani government, the WB`s Baku Office told Trend.
"Official negotiations between the Azerbaijani government and the World Bank on the loan agreement have been completed, and it is expected to sign the final protocol," the representative office said. "The approval of the loan by the Board of Directors is scheduled for May 30."
The term of project implementation in connection with the provision of additional financing will be extended until September 30, 2018.
The expansion of business opportunities for local communities and generating their profits is also envisaged within the framework of the project.
This project is based on the results of the first one, which contributed to an increase of revenues for 600 000 farmers, improvement of irrigation services for 700,000 people and provision of clean drinking water to 150 villagers. The project focuses on five key zones- Shirvan plane, Mugan-Salyan, Nakhchivan, northern and north-western zones of Azerbaijan.
Unlike the first, covering 45 regions, the second project provides the coverage of all 56 regions of the country. The implementation of the first project was completed in 2012, and the second was accounted for 2017.
The implementation of the project helps improve the lives of more half million rural people in the country, as well as contribute to the development of rural areas in Azerbaijan.
The project consists of three components, including the development of community infrastructure in rural areas, technical support of rural infrastructure, as well as management and monitoring of project results.
The Azerbaijani government and the International Bank for Reconstruction and Development (IBRD is part of the WB) signed a loan agreement on Azerbaijan Rural Investments (AzRIP-2) in Oct.2012. The cost of the project makes up $53.6 miliio, some 30 million of which is provided by the IBRD, some $23.6 million- at the expense of Azerbaijani government`s share in the project.
The loan agreement on AzRIP was signed in Sept. 23, 2004 and entered into force on Dec. 29, 2004. The total project cost is $21.1 million, $15 million of which accounted for the International Development Association credit, $3.3 million by a grant from the Japanese government, with the rest to be paid by the government ($1.250 million) in the project and the communities.
Azerbaijan is a member of the World Bank since 1992. Total liabilities of the bank to the country amounted to 54 projects over $3 billion during this period.
Translated by S.I.
Edited by C.N.
