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World Bank approves two projects for Azerbaijan

25 June 2009 14:10 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. The World Bankâ€™s Board of Executive Directors has approved the Public Investment Capacity Building Project and Additional Financing for Second Highway Project for Azerbaijan, said the WB Office in Baku.

For the Public Investment Capacity Building Project, a US$8 million IDA credit has a maturity term of 20 years with a 10 year grace period.

The projectâ€™s key objective is to improve the quality and efficiency of preparation and implementation of investment projects in key priority sectors, especially infrastructure. The project is designed to provide training both in modern project management techniques, and highly specialized technical education in selected sectors. Special attention will be paid to measuring the impact of the project activities, and annual training plans will be realigned based on evaluation of training and capacity needs.

For the Additional Financing for Second Highway Project, a US$62 million IDA credit has a maturity period of 20 years with a 10 year grace period, and a US$113 million IBRD loan has a maturity term of 20 years with a 4 year grace period.

This financing will continue the Bankâ€™s road program in the country to enable it to become a regional transit point and promote local development. Specifically, the financing will support rehabilitation of the Hajigabul â€“ Bahramtepe road connecting an important agricultural region in the South West of Azerbaijanâ€“home to significant portion of the countryâ€™s populationâ€“with the main urban centers. In addition to rehabilitating 116 km of highway, the project will support the improvement of about 200 km of local roads connecting the highway with nearby villages.