By Leman Mammadova
Asian Development Bank (ADB) has revealed the amount of funds to be allocated to Azerbaijan for the new partnership period, aimed at strengthening the national economy.
ADB plans to allocate $900 million to the country in 2019-2023 within the framework of the new five-year strategy, the Bank told local media.
At the same time, the demand for sovereign loans in Azerbaijan is estimated at $800 million.
Within the framework of the previous strategy covering 2014-2018, ADB approved the provision of loans and grants to Azerbaijan totaling $3.04 billion. The largest projects financed by ADB under the previous strategy were “Improving Governance and Public Sector Efficiency Program” ($500 million) and financing the second phase of the Shah Deniz project ($1.25 billion).
Recently, ADB has approved a new strategy for Azerbaijan – the five-year Country Partnership Strategy for the period of 2019-2023. The main directions of the strategy include developing the private sector, improving the efficiency of the public sector, improving the infrastructure and strengthening the human capital.
Moreover, ADB will provide support in the field of high technologies and finance innovative projects as well as will analyze opportunities of lending in national currency.
Azerbaijan joined ADB in 1999 and its share in the Bank is 0.5 percent. The Bank's local representative office opened in the country in 2004. Azerbaijan hosted the 48th Annual Meeting of the ADB Board of Governors in 2015.
The main objective of ADB is to support the economic development of its member countries and to help alleviate poverty and improve the living standards of the population.
ADB has provided a $5.1 billion loan, guarantee, grant and technical assistance for the country so far.
ADB’s program for Azerbaijan during 2011–2017 consisted of 47 projects. Energy was the largest sector supported, accounting for 42 percent ($2.1 billion) of total financing, followed by transport at 27 percent ($1.4 billion).
Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
Follow us on Twitter @AzerNewsAz