By Abdul Kerimkhanov
Asian Development Bank (ADB) Board of Directors has approved a $250 million policy-based loan in support of the Azerbaijani government’s second program for Improving Governance and Public Sector Efficiency Program, a source with the ADB has said.
As noted in ADB, credit funds for the implementation of the second phase of the program will be provided for 15 years.
According to the reports published earlier, the program is aimed at improving governance in the public sector and diversifying the economy. By reforming the legal and institutional structures, the Azerbaijani government is helping to improve the business environment and access to finance for small and medium enterprises (SMEs).
Within the framework of this program, the Azerbaijani government has implemented 22 reforms in the field of state financing, improving corporate governance in state-owned companies and in the financial sector. ADB says that one of the strong reforms implemented is related to the implementation of corporate standards in state-owned companies.
In December 2017, the ADB Board of Directors approved a $250 million loan to Azerbaijan for the Improving Governance and Public Sector Efficiency Program, Subprogram 1.
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
As Azerbaijan’s largest multilateral development partner, ADB has mobilized over $5 billion in financing support for the country since 1999. So far, ADB-assisted projects and programs have delivered reliable drinking water to 485,000 people, provided flood protection to 240,000 people, ensured electricity access for 100,000 households, and built or upgraded 325 kilometers of roads.
ADB plans to allocate $900 million to the country in 2019-2023 within the framework of the new five-year strategy.
The main directions of the new strategy include developing the private sector, improving the efficiency of the public sector, improving the infrastructure and strengthening the human capital. Moreover, ADB will provide support in the field of high technologies and finance innovative projects as well as will analyze opportunities of lending in national currency.
Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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