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ADB revises GDP growth forecast for Azerbaijan

22 December 2014 18:24 (UTC+04:00)
ADB revises GDP growth forecast for Azerbaijan

By Aynur Jafarova

The Asian Development Bank predicts that the GDP growth in Azerbaijan will be three percent in 2014, and the country’s economic growth will stand at 3.5 percent in 2015, ADB Baku Office economist Nail Veliyev said at a press conference on December 22.

ADB previously predicted that the country’s GDP growth would be at five percent in 2014 and 4.8 percent in 2015.

Veliyev noted ADB reviewed its forecast for Azerbaijan’s economic growth due to the decrease in world oil prices.

“We expected that the oil sector will grow as of 2014, however, we began to see its recession in mid-2014.”

The economist went on adding that according to the preliminary data the inflation in Azerbaijan is expected to stand at two percent in 2014 and three percent in 2015.

He said currently, ADB is working on its final report. It is expected that the current research will be completed in February 2015, and the report will be published in April.

ADB develops new business plan

ADB's Country Director to Azerbaijan Olly Norojono told journalists that the bank has developed a new business plan for operations in Azerbaijan in 2015-2017.

He noted the draft business plan is being discussed by the country’s government.

“We expect the decision of the government on the business plan in January next year,” he said.

He also said currently, a business plan covering 2014-2016 years is being implemented and there are no serious differences between the two documents.

Electricity distribution may be carried out by private companies

Norojono went on adding that in the near future, the distribution of electricity in Azerbaijan may be handled by private companies.

“We know that now energy, particularly electricity, is under the full control of the state,” he said. “Recently, our bank has started providing technical assistance in this area - we analyze the ways and means of private sector in this sphere.”

He also noted the study will affect not only the distribution, but also the production of electricity.

“The work has just begun and it is too early to talk about its details,” Norojono said. “We will also consult with the government on this issue. After the analysis, namely, by the middle or the end of 2015, it will be possible to say whether the government will accept our offers or not.”

ADB plans to allocate $140 million to the development of energy sector in Azerbaijan over 3 years.

"These loans are provided for 2015-2017 and aimed at supporting the development of renewable energy sources in Azerbaijan, which contributes to the diversification of energy sources and the use of wind, solar, hydro energy, biomass and others," said the strategy.

ADB plans to implement a pilot project on renewable energy in order to assess the capacity of public and private investment in this area.

The bank is also ready to consider the possibility of financing a program to improve the efficiency of the transmission and distribution of electricity.

ADB was established in 1966. It has 67 members. The bank's headquarters is located in the capital of the Philippines, Manila. Azerbaijan joined ADB on December 22, 1999.
The country's share in the bank's capital is 0.5 percent.

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