CBA: ADB upholds Azerbaijan’s development concept

Source: AzerNews

The Asian Development Bank (ADB) continues the work on new 5-year strategy for Azerbaijan to be designed for 2014-18 and the Azerbaijani government observes with an interest how the strategy preparation is going on.

The preparation on the Country Partnership Strategy and the bilateral relations between the ADB and Azerbaijan was a key focus of talks of the meeting between Deputy Chairman of the Central Bank of Azerbaijan (CBA) Khagani Abdullayev and the ADB mission led by Head of the ADB Department of Regional Cooperation & Operations Coordination Vicki Tang.

The CBA reported that the meeting discussed the prospects of cooperation in the field of cashless payments, micro-financing, economic and diversification. An emphasis was made on the expansion of ADB cooperation with the banking sector of Azerbaijan.

At the meeting, Abdullayev noted the Country Partnership Strategy support the realization of development concept "Azerbaijan 2020: Look into the Future".

Under the new strategy, the ADB may begin funding new areas such as solid waste management, alternative and renewable sources of energy, modernization of railway transport and urban public transport.

At present, the ADB has seven ongoing projects in Azerbaijan. The current portfolio of the bank amounts to $990 million. Some 46 percent of the portfolio falls to the transport sector, while 16 percent is in the energy sector, 36 percent in city services, i.e., the improvement of water supply, sanitation system, etc.

According to the updated business plan of the bank's operations in Azerbaijan for 2012-2014, the total amount of funding for approved ADB projects in Azerbaijan in this period will be $575 million. The projects approved under the business plan, as expected, required $250 million in 2012. Some $155 million is expected to be necessary for the projects in 2013 and some $170 million in 2014.

In 2012-2014 the bank intends to allocate $155 million annually out of the ordinary capital resources. The bank plans to allocate $3.25 million in technical assistance in 2012-2014.

Azerbaijan is a member of the ADB since 1999. The country's share in the bank's capital is 0.5 percent.

Azerbaijan approved Development Concept "Azerbaijan 2020: A Look into the Future" in late 2012. The need for such a concept is explained by the fact that the country is entering a new phase in its development.

As a result of the activities envisaged in the concept, the GDP per capita will more than double to reach $13,000. In 2020, according to the World Bank's gross national income classification, Azerbaijan will become a "high average income country" with plans to advance further among "high human development" countries of the UNDP human development report.