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EBRD explores possibility of supporting Azerbaijanâ€™s rapid infrastructure development

13 May 2011 11:50 (UTC +04:00)

â€œIn the transport sector we have had preliminary discussions to support road rehabilitation, the railway investment programme and the construction of the ship yard. It is too early at this stage to disclose specific amounts and dates since we have not yet received an official request from the government but EBRD would be able to mobilise significant amounts of financing â€“ comparable to what the World Bank and the Asian Development Bank have provided â€“ in a relatively short timeframe possibly even this yearâ€, said Delaey.

â€œEBRDâ€™s investments are project driven. There is no minimum or maximum amount for investments in any given year for any given country. Our mandate is to invest alongside investors in projects that meet our requirements. Based on our current pipeline, we hope to invest approximately US$100 million in 12 to 15 projects this year. We are currently assessing several projects in the agribusiness sector. Among others we are considering providing long-term debt financing to help expand existing production facilities at a food wholesaler and a soft-drink producer. We are also examining investment opportunities in the manufacturing and service sector. We are negotiating with a leading consumer goods retailer, a medical service provider and a company that provides chemical mixes for BP. The remaining projects will mainly consist of MSME credit facilities to local banks and microfinance institutions. Among the more noticeable transactions in the financial sector EBRD participated in Azerbaijanâ€™s first convertible bond issue by Unibank in March 2011â€.

Note that, Azerbaijan has been in cooperation with EBRD since 1991.