WB approves extra funding for highway project
The World Bank has approved $175 million for the
upgrade of Azerbaijan`s road infrastructure.
The amount, to be disbursed as additional financing for the Second Highway Project, consists of a $62 million concessional credit from the International Development Association (IDA) and a $113 million loan from the International Reconstruction and Development Bank (IBRD). Both institutions are part of the WB.
This financing is being granted as part of the bank`s road program in the country to enable Azerbaijan to become a regional transit point and promote local development. Specifically, the financing will support the rebuilding of the Hajigabul- Bahramtepe road connecting an important agricultural region in southwestern Azerbaijan with its 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.
The Hajigabul-Bahramtepe road project integrates both highway rehabilitation and village road improvement. There is strong evidence from other projects in Azerbaijan, and elsewhere, that the renovation of roads significantly improves the mobility of goods and services between rural areas and urban centers, boosting businesses through a reduction in transport costs, increasing incomes, and reducing prices for the rural and urban poor.
According to WB executives, more than half a million Azerbaijanis will directly benefit from road improvements by being better able to trade with main urban centers and neighboring regions. Such projects will also benefit local communities and boost regional development, which is a major priority for the government.
On the same day, the WB approved an $8 million IDA credit to Azerbaijan for the Public Investment Capacity Building Project. The project`s key objective is to improve the quality and efficiency of preparation and implementation of investment projects in key priority sectors, especially infrastructure.
According to the WB, the Azerbaijani government is implementing an ambitious public investment program aimed at rehabilitating and improving all major public infrastructure. However, it is also concerned about the quality of human resources in government ministries, agencies and state-owned enterprises that are implementing critical public investment projects that often lack modern project management and technical skills.
"This project will develop key skills and domestic capacity for implementing the public investment program," said Asad Alam, WB Regional Director for South Caucasus. "This will help strengthen the efficiency of public investment spending."
"The project is designed to provide training in both modern project management techniques, and specialized technical skills in selected sectors," said Elizabeth Wang, Task Team Leader for the project. "Special attention will be paid to measuring the impact of the project activities."
The project has four components to provide government ministries and agencies with training on general project management, technical knowledge and skills in selected sectors, making training more effective, and covering project implementation costs.
Azerbaijan joined the World Bank in 1992. Since then, financing has been approved to the country for some $2.6 billion in 44 programs.
The amount, to be disbursed as additional financing for the Second Highway Project, consists of a $62 million concessional credit from the International Development Association (IDA) and a $113 million loan from the International Reconstruction and Development Bank (IBRD). Both institutions are part of the WB.
This financing is being granted as part of the bank`s road program in the country to enable Azerbaijan to become a regional transit point and promote local development. Specifically, the financing will support the rebuilding of the Hajigabul- Bahramtepe road connecting an important agricultural region in southwestern Azerbaijan with its 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.
The Hajigabul-Bahramtepe road project integrates both highway rehabilitation and village road improvement. There is strong evidence from other projects in Azerbaijan, and elsewhere, that the renovation of roads significantly improves the mobility of goods and services between rural areas and urban centers, boosting businesses through a reduction in transport costs, increasing incomes, and reducing prices for the rural and urban poor.
According to WB executives, more than half a million Azerbaijanis will directly benefit from road improvements by being better able to trade with main urban centers and neighboring regions. Such projects will also benefit local communities and boost regional development, which is a major priority for the government.
On the same day, the WB approved an $8 million IDA credit to Azerbaijan for the Public Investment Capacity Building Project. The project`s key objective is to improve the quality and efficiency of preparation and implementation of investment projects in key priority sectors, especially infrastructure.
According to the WB, the Azerbaijani government is implementing an ambitious public investment program aimed at rehabilitating and improving all major public infrastructure. However, it is also concerned about the quality of human resources in government ministries, agencies and state-owned enterprises that are implementing critical public investment projects that often lack modern project management and technical skills.
"This project will develop key skills and domestic capacity for implementing the public investment program," said Asad Alam, WB Regional Director for South Caucasus. "This will help strengthen the efficiency of public investment spending."
"The project is designed to provide training in both modern project management techniques, and specialized technical skills in selected sectors," said Elizabeth Wang, Task Team Leader for the project. "Special attention will be paid to measuring the impact of the project activities."
The project has four components to provide government ministries and agencies with training on general project management, technical knowledge and skills in selected sectors, making training more effective, and covering project implementation costs.
Azerbaijan joined the World Bank in 1992. Since then, financing has been approved to the country for some $2.6 billion in 44 programs.
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