ADB to invest $700M in Azerbaijan's energy sector
By Nigar Orujova
The Asian Development Bank (ADB) plans to allocate nearly $790 million for energy projects in Azerbaijan in 2016-2018, the business plan of the bank for Azerbaijan reveals.
These funds will be allocated for development of projects on electricity distribution and renewable energy systems, according to the plan covering 2016-2018.
The bank plans to allocate $250 million annually for the development of the electricity distribution network in Azerbaijan, and ADB has provided technical assistance in the amount of $800,000 for the development of the project.
The share of government’s involvement in the project is $75 million in 2016, $85 million in 2017, $90 million in 2018.
The first loan on renewable energy in the amount of $40 million was built into the business plan for 2018. The share of government’s involvement in this project is $13 million.
The estimated cost of the ADB loan program in Azerbaijan for 2016-2018 is $2.24 billion. The total cost of the projects, taking into account the interest of the Azerbaijani government, is $3.08 billion.
ADB funds will be directed to water, transport (road and railway), as well as energy projects.
The total volume of technical assistance, which will be provided by the Asian Development Bank in 2016 and 2017, amounts to $3.8 million. The business plan does not envisage funds for 2018.
Founded in 1966, ADB has 67 members today. The bank's headquarters is located in Manila, Philippines. Azerbaijan became member of the bank in December, 1999. The country’s share in the bank's capital is 0.5 percent.
Since 1999, Azerbaijan has received 20 project loans, and 1 project grant totaling $1.64 billion, including 6 non-sovereign loans of $143 million, and $14.4 million in technical assistance grants to support its development programs.