Azeri government and World Bank will sign agreements in Aug

It is planned to sign two credit agreements on Power Transmission Project.

No official signing ceremony is expected for this respect. Azerbaijan will sign the document in the country and the WB – in Washington. On he part of Azerbaijan the agreements will be inked by Avaz Alakbarov, the Azerbaijan Minister of Finances under the PRSC and Vice Premier Eyyub Yagubov under Power Transmission Project.

The Board of Directors of the WB adopted the approval of two credits on 17 May 2005. Under the first project Azerbaijan will receive $20m with the term of 35 years, including 10-year grace period. Major components of the project are the development of opportunities of the non-oil sector of economy, increase of opportunities for registration and improvement of management, application of social involvement and improvement of targeted service. The funds of the project will be divided in the following way: 5% - for education, 5% - for health and social services, 40% - for energy issues, 40% - industry and trade, 10% - basic finances. The credit is allocated on the terms of the International Association for Development.

A $48m-credit with the term of 20 years, including 8-year grace period was allotted for the implementation of the project directed at the improvement of the energy supply and management system. It comes as the first credit of the WB in Azerbaijan financed at the expense of the   International Bank for Reconstruction and Development. (Trend)