This highly favorable rate reflects the benefit of ADB’s sub-LIBOR funding costs and lower administrative charge.

It should be noted that ADB is currently discussing with the government Strategy and Program Update 2005-2006, which proposes a public sector lending program in excess of $300 million, as well as technical assistance grants in the amount of $7.8 million.

ADB’s areas of focus in Azerbaijan include education, renewable energy sources, microfinancing, roads, internally displaced persons (IDPs), urban development in regional towns, and water supply and sanitation.

ADB currently has three approved project loans under implementation in Azerbaijan, totalling $52 million, addressing flood mitigation and urban water supply and sanitation in the regions. Other projects are to be considered shortly by ADB’s Board of Directors.

APA