Azernews.Az

The Asian Development Bank (ADB) spent $69 million in 2011 to finance various projects in Azerbaijan, its representative in the country has said.

Olly Norojono told a news conference devoted to the outcomes of the ADB’s year-long activity that the ADB is mainly implementing projects in the fields of transport, water supply and sanitation system improvements, and the energy sector.

"The ADB has contributed approximately $23 million to the country’s transport sector. The funds have been spent chiefly on the construction of the Ganja [Azerbaijan’s second largest city] bypass, Masally-Astara highway [in the south of the country] as well as feeder roads."

According to Norojono, the ADB is expected to approve by the end of 2011 a third tranche of funds, worth $200 million, to continue building the Masally-Astara highway.

Construction of the Ganja bypass is due to be completed in mid-2012, while that of the Masally-Astara road – in 2013.

As for water supply and sanitation sector, the ADB’s spending amounted to $11 million this year. The funds were spent to implement projects in the cities of Nakhchivan and Goychay as part of a $600 million investment program.

The second tranche amounting to $300 million of multitranche funding, which will be spent to overhaul the water and sanitation systems in Nakhchivan, Goychay, Agdash and Beylagan, is due to be approved by the ADB by the end of December.

In the energy sector, the ADB has allocated about $35 million for the project to rehabilitate power lines, Norojono said. The project envisions the construction of a 280 kilometer electricity transmission line with 220 KWt output capacity from the Mingachevir hydro-power plant to the Absheron Peninsula and a 97 kilometer transmission line from the Shimal power station to the village of Hovsan, as well as the construction of five substations. The project is to be completed in mid-2012.

Norojono said that in mid-2011 the ADB has approved a business plan for its operations in Azerbaijan. According to the business plan, the bank will allocate about $1 billion in 2011-2013 for projects in Azerbaijan.

Worldwide, the ADB’s allocations totaled $17.51 billion in 2011. Moreover, the bank allotted $2.8 billion as part of the trade financing program.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members, including 48 from the region.

The ADB's leading shareholders are Japan and the United States (31.2 percent of the total stock), India and China (12.8 percent), Australia, South Korea and Canada (16 percent).

Azerbaijan joined the ADB in December 1999 and its share in the bank's capital is 0.5 percent.