Azernews.Az

BAKU – The Asian Development Bank has recently approved a three-year business plan on Azerbaijan, pledging to lend around $340 million to the country in 2011, according to ADB’s local office.

The approval of the business plan is an interim step in the preparation of a new country partnership strategy next year.

Under the 2011-2013 Country Operations Business Plan, endorsed by the bank’s board of directors, ADB will continue to support Azerbaijan’s transport, energy, urban water supply and sanitation and urban services sectors.

In the transport sector, ADB will allocate new loans to finance reconstruction of the Masally-Astara highway in southern Azerbaijan. The bank is also considering funding the major highway between Baku and the Georgian border, a main corridor in Central Asia regional economic cooperation, the ADB office in Azerbaijan said.

The investment program in the energy sector will enhance and upgrade the national power distribution network, increase the reliability of the power supply; reduce distribution losses; and improve the financial, governance, and operational performance of the power sector.

In urban services, the ADB is to continue assisting the Azerbaijani government in improving water supply and sanitation in secondary cities. The ADB may also consider funding urban transport projects.

Azerbaijan joined the ADB in 1999. The Asian bank has invested up to $700 million in Azerbaijan’s economy so far and provided $11.5 million to the country in grants from 1999-2009.