Country may join EBRD Technical Cooperation Fund

By Azernews

By Leman Mammadova

Presently, European Bank for Reconstruction and Development (EBRD) is keen to implement the projects in the development of small and medium-sized enterprises (SMEs) and financial sector in Azerbaijan.

Azerbaijan could join the Bank’s Technical Cooperation Fund to expand cooperation in SMEs. This issue was discussed during a meeting held between Shahin Mustafayev, Minister of Economy, and Matteo Patrone, EBRD Managing Director for Eastern Europe and Caucasus, in Baku on September 5.

Mustafayev briefed on the country’s economy and priorities, the ongoing reforms in the development of the private sector and noted that this creates great opportunities to expand cooperation between Azerbaijan and the EBRD.

He highlighted the Bank's support for infrastructure projects and private sector development in Azerbaijan, financing various projects in energy, infrastructure, transport, opening a credit line to banks and providing loans to private companies.

He also stressed the importance of the EBRD's support for the Southern Gas Corridor project and road construction projects.

“The use of best practices in the joint projects with international financial institutions, including the EBRD, brings modern technology and innovation to Azerbaijan,” said Mustafayev.

Patrone, in turn, shared his views on expansion of cooperation with Azerbaijan.

The meeting also touched on issues of cooperation between the EBRD and the Azerbaijan Agency for Development of Small and Medium-sized Enterprises (SMEs), Azerbaijan's joining the EBRD Technical Cooperation Fund to further deepen ties in SMEs, financing the projects in various sectors of the economy and the Eastern Partnership Investment Forum to be held in London in November.

EBRD is a leading investor in Azerbaijan. The country has been cooperating with EBRD since 1992 to achieve further economic development. One of the main priorities of EBRD in Azerbaijan is to support the local corporate sector with direct financing.

In total, the Bank has allocated almost 3.3 billion euros for projects in various sectors in Azerbaijan. The largest share of investments accounts for the energy sector (50 percent), while 42 percent accounts for infrastructure projects. The rest is for financial, industrial and commercial projects.

The Bank continues working with the Azerbaijani government and the private sector to make further investments in the country. At the moment, the number of active EBRD projects in Azerbaijan is 45, and in total, the EBRD has implemented 167 projects in Azerbaijan. The current portfolio of projects is worth 1.4 billion euros. Major share of investments accounts for to the private sector.

EBRD allocated 350 million euros for implementation of 26 green projects in Azerbaijan, so far.

Recently, EBRD has introduced its new country strategy covering 2019-2024 to help Azerbaijan develop its non-oil sector, strengthen local lenders and boost investment in the green economy.

EBRD pays special attention to the development and financing of renewable energy projects in Azerbaijan.