Azernews.Az

The World Bank (WB) has allocated $1.2 billion to Azerbaijan under 11 projects in the past year, its executive said.
Peter Thomson, Director of the Sustainable Development Department in the WB`s Europe and Central Asia Region, told a news conference at the WB Baku office on Friday that Azerbaijan earlier received loans from the bank only on concessional terms. However, in the past years, the credits have been allocated on commercial terms set by the European Bank for Reconstruction and Development (EBRD) due to the country`s rapid economic growth.
"As a result, the amount of the WB loans has significantly increased," Thomson said.
The bank official said the meetings he had in Baku were productive and he became closely familiar with the work under way within WB-funded projects. During the visit, Thomson studied the course of the renovation of the Baku-Shamakhi highway and attended the presentation of a project on upgrading the water supply and sewer systems of Shamakhi. He also examined the oil-polluted areas on the Absheron Peninsula that will be cleaned under a program on WB assistance in environmental protection.
"I said during my meetings with government officials that we were ready to continue providing assistance in these areas. We are keen on further expansion of the programs we are implementing in Azerbaijan."
Thomson said agreement was reached with officials during the talks to ensure that the projects implemented with WB`s support will be long-term. "This means that projects on the renovation of main roads and environmental protection will be agreed in the coming years."
Thomson went on to say that the WB was working on two new projects in Azerbaijan. "We are holding discussions on the development of the Baku Subway and on the overhaul of the Hovsan [a settlement outside Baku] water purification facility."
He said the bank was preparing a feasibility study on upgrading the facility jointly with the Azersu water supply company. The value of the project will be known after the study is completed. However, the operations on upgrading the facility, increasing its capacity and laying new lines are to cost between $800 million and $1 billion, according to preliminary estimates.
Thomson said talks on the subway project were currently at the initial stage. He said it was too early to talk about the scope of the project, its details and cost.
"The World Bank is interested in allotting funds for these two projects," Thomson said.
He continued that the bank also intended to execute a project on processing hard waste in Azerbaijan. Clean-up of a 1,000 hectare area has started jointly with the Ministry of Emergencies.
Projects are also being implemented jointly with the WB in the transport sector, in particular, those concerning upgrade of main roads and railways. Moreover, the bank is looking to cooperate with Azerbaijan in relocating the seaport outside of the capital and in improving existing infrastructure.
Thomson emphasized that the WB was experienced in the area of upgrading urban infrastructure. "We are collaborating with China and Turkey in this field. The bank could work on joint infrastructure development projects in Baku as well."
Head of the WB office in Baku, Gregori Yedzherchak, said the bank was ready to allocate $600 million to Azerbaijan anually in the next two years. He said his office has analyzed a strategy of cooperation with the country and submitted it to the WB board of directors.
"Based on that analysis, the board passed a decision to allot $600m to Azerbaijan every year. The amount could further rise in the future as the funds disbursed by the WB in the past two years exceeded the initially-set budget. If a need arises for additional financing in the coming years, the envisioned limit could be raised."
Yedzherchak added that the WB was interested in allocating technical assistance to Azerbaijan more than financial aid.

`No embellishment of costs`
The exaggeration of the cost of projects implemented in Azerbaijan with the World Bank`s financial aid is out of the question, Peter Thomson told the press.
The statement was in response to circulating local media reports about an alleged embellishment of the value of some projects implemented under WB loans.
"The bank`s experts were involved in developing feasibility studies for these projects. Transactions under the projects are carried out in line with WB regulations. Along with government agencies, the implementation of the projects is overseen by the bank itself until their completion. All this makes embellishing the cost of our projects impossible," Thomson said.