Azernews.Az

The World Bank on Thursday approved a $50 million loan to finance a new project aiming to provide about 185,000 Azerbaijanis displaced by the armed conflict with Armenia in the 1990s with better access to infrastructure, services and housing conditions.

The loan will be provided by the International Reconstruction and Development Bank (IBRD). With the $28.5 million government contribution, the total financing for the Azerbaijan IDP Living Conditions and Livelihoods Project is $78.5 million.

At present Azerbaijan has one of the highest concentrations of IDPs per capita in the world with seven percent of its population remaining displaced as a result of the Nagorno Karabakh conflict. Up to 50 percent of IDPs still live in harsh conditions, according to the World Bank.

"Recent research and analysis by the World Bank and government of Azerbaijan showed that despite much investment IDPs still remain vulnerable, are more likely to be poor than non-IDPs, have worse living conditions, lower employment rates than the non displaced and rely heavily on state transfers as their main source of income," says Joanna De Berry, head of the World Bank team which prepared the project. "The project is designed to respond to those challenges and to complement the considerable state funded programs for IDP housing provision."

The new project will build on the successful implementation of the previous IDP support projects funded by the World Bank under which more than 400 micro-projects were implemented benefiting more than 120,000 IDPs throughout Azerbaijan. This project will expand the community micro-projects, while strengthening the focus on improving housing conditions of IDPs living in public buildings and providing sustainable job opportunities to increase self-reliance of this group of population.

Objectives of the project will be achieved by a number of means, including investments in small infrastructure and services micro-projects which IDP communities identify as their priorities. An estimated 200 micro-projects will reach a beneficiary population of between 120,000 – 150,000 persons. The project will also help rehabilitate up to 95 collective centers and thus improve housing conditions of about 30,000 persons. About 1,400 young people will receive vocational training and grants to start-up their own business. Some 200 community groups will be supported with the training and resources to establish small enterprises. As part of the income generating activities approximately 1500 micro-credits will be extended to IDPs to start up or expand their businesses.

Since joining the World Bank in 1992, Azerbaijan has received funds worth about $2.9 billion for 43 projects.