Germany to allocate Azerbaijan 370 million euros loan
By Aynur Jafarova
Germany will allocate a soft loan worth 370 million euros to Azerbaijan.
A corresponding agreement on financial cooperation between the governments of Azerbaijan and Germany on projects agreed upon in 2008-2012 was signed on November 28.
The agreement was signed by Azerbaijan's Finance Minister Samir Sharifov and German Ambassador to Azerbaijan Heidrun Tempel.
The document said most of the loan - 220 million euros- which will be financed by the German bank KfW will be directed at implementing the infrastructure development program and improving the supply of drinking water to the population of Ganja and Shaki cities.
"In addition, 130 million euros will be allocated to the open program on renewable energy and energy efficiency, and 20 million euros to the program for the environmentally sound management of waste," the finance ministry said.
At the signing ceremony the sides noted that they have had a successful cooperation based on mutual trust since 1993.
"In addition, the parties also are working jointly on financing infrastructure projects in the fields of renewable energy and environmental protection," the ministry said.
Diplomatic relations between Azerbaijan and Germany were established in February 1992. The Azerbaijani-German trade turnover amounted to $1.744 billion in 2012. In the first half of 2013, the figure was $1.066 billion.
There are over 100 German companies in Azerbaijan. German companies have also acted as contractors under 10 investment projects worth more than 460 million euros.
A solid legal base exists between Azerbaijan and Germany. To date, around 29 intergovernmental documents have been signed between the two countries.