By Ayya Lmahamad
The Asian Development Bank (ADB) country operations business plan for 2020–2022 is consistent with Azerbaijan's partnership strategy (CPS) for 2019–2023, press- service of the bank has reported.
This strategy aims to support diversified and inclusive growth in Azerbaijan by implementing three strategic pillars, that include boosting private sector development, raising public sector efficiency and improving infrastructure and strengthening human capital.
The strategy is in line with ADB’s Strategy 2030 which focuses on such operational priorities as addressing remaining poverty and reducing inequalities, strengthening governance and institutional capacity, making cities more livable, fostering regional cooperation and integration.
Moreover, the CPS is closely aligned with the Strategic Road Map on the National Economy Perspective approved in December 2016, which aims to strengthen efforts to diversify Azerbaijan's economy and promote sustainable, non-oil economic growth.
“The CPS is demand driven and envisages a flexible and adaptive approach to changing circumstances, drawing from the wide range of ADB’s instruments and modalities. As both the public and private sectors are still consolidating after the economic downturn of 2015-2017 that followed the 2014 oil price shock, ADB’s engagement in the initial years of the CPS will focus on supporting the government through policy- based operations, analytical and advisory assistance (including for project preparation), and technical assistance to strengthen the capacity of pertinent government institutions and the private sector. This will lay a platform for selective project ending in the later years of the CPS, if the tight public borrowing stance eases and the private sector’s profile improves,” the bank's statement reads.
Depending on market conditions and opportunities, ADB’s private sector will seek to support the micro entrepreneurs, and small and medium- sized enterprises, especially those involved in noncyclical sector and other underserved client segments.
“ABD may also engage directly with eligible small and medium-sized enterprises and state-owned enterprises to crowd in private capital. Through its non-sovereign trade finance program, ADB will seek to provide guarantees and loans to local banks, aiming at closing market gaps and promoting non-oil trade. In infrastructure, and subject to viable opportunities, ADB may support public- private partnership projects through equity or debt finance,” ADB added.
Azerbaijan, a group C developing member country, is eligible for regular ordinary capital resources (OCR) lending. The indicative resources available during 2020–2022 for sovereign operations total $820 million.
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