Azernews.Az

By Aynur Jafarova

The Asian Development Bank (ADB) plans to allocate around $500 million for state projects in Azerbaijan within the next three years.

The news was announced by Head of ADB's Baku office Olli Norojono at a press conference on December 16.

The financial allocation is envisaged in the draft business plan for the bank's operations in Azerbaijan in 2014-2016.

The plan has already been approved by the government and will be submitted for the consideration of the Board of Directors in January 2014.

Norojono said ADB will maintain the rate of the annual financing of state projects in Azerbaijan at the level of $155 million, as reflected in the current business plan.

"However, this figure is not fixed. We can allocate more or less money. For example, the Board of Directors approved the allocation of $150 million in 2013 and $250 million in 2011," Norojono said.

The bank will provide technical assistance totaling $5 million within three years, according to Norojono.

Norojono said ADB's active portfolio in Azerbaijan is about $ 1.2 billion today, while in 2010 it was $500 million.

Draft strategy for Azerbaijan

Head of ADB's Baku office went on to say that the ADB Board of Directors will consider the first draft strategy for operations in Azerbaijan in the first quarter of 2014.

The strategy will cover the period from 2014 to 2018, Norojono said.

"The Azerbaijani government has already approved the document which reflects the results of consultations on the strategy between the government and the bank in July, 2013," Norojono noted.

The major directions of the strategy will include traditional fields of the bank's activity in Azerbaijan, including transport, energy, and urban services.

Electricity transmission improvement

Norojono also said ADB will finish implementing an electricity transmission improvement project in Azerbaijan in late 2013.

A two-contoured 220 -kilovolt power transmission line is planned to be constructed from the Mingachevir hydroelectric power station to the Absheron substation as part of the project.

ADB delivered a $160 million loan for the project implementation. The total cost of the project is $220 million.

The bank also assessed the completed project for the construction of the Ganja by-pass road in 2013. The assessment showed that the project was successful.

ADB has spent $ 55.4 million to finance some operations as part of the road reconstruction and expansion project.

ADB has also approved the third tranche of the multi-tranche financing of investment in the $600 million water supply and sewerage program in Azerbaijan in 2013.

The operations on reconstructing the water supply and sewerage system in the Agjabadi region and the operations in the territory of Nakhchivan, not covered by previous projects, are to be conducted at the expense of the third tranche worth $150 million.

The bank provided Azerbaijani AccessBank with a $50 million loan to finance small and medium entrepreneurs as part of transactions with the private sector in 2013.

"ADB's active portfolio in Azerbaijan today is about $1.2 billion, while it equaled $500 million in 2010," he said.

Marked bus lanes

Norojono also said ADB is offering to use marked bus lanes on Baku's roads.

The proposal is included inone of the realisation variants ofthe project to improve the urban infrastructure in Baku, he said. The bank is currently discussing the project with the government.

"Moreover, the project includes proposals aimed at simplifying the process of changing the various kinds of public transport by the capital's residents," he said.

ADB's proposals also relate to areas that use toll roads. The bank also intends to continue working to improve road infrastructure.

The project will acquire a more concrete shape after technical assistance expires in July 2014.

"The bank hopes ADB's proposals will be taken into account while implementing the Greater Baku Regional Development Plan," he said.

The Manila-based ADB 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. In 2012, ADB assistance totaled $21.6 billion, including co-financing of $8.3 billion.

Azerbaijan's share in the bank's capital is 0.5 percent.