WB to allocate $66.7 million extra funding for IDPs in Azerbaijan
The World Bank and the government of Azerbaijan have signed an agreement on additional financing on the IDP Living standards and Livelihoods Project, WB Baku office told Trend. The total amount of the financing is $66.7 million.
The WB Board of Directors approved additional financing for the project on June 17. The share of the Azerbaijani government in the project amounts to $11.83 million.
The WB Baku office has not specified the terms of the funds’ allocation within the framework of the additional financing, as the disbursement of the credit issued within the main project has not yet been completed. Some $0.29 million of the $50 million-credit should be repaid, according to the bank.
The project is expected to support rehabilitation of community infrastructure, such as water and power supply, roads, drainage systems, schools and health centers. Additionally, it will include training and business development opportunities for young IDPs, income generation and micro-credit activities.
Main objective of the project is to improve living conditions and increase self-reliance of targeted internally displaced persons.
Additional funds will be used to improve basic local infrastructure, living conditions, income, skills and employment opportunities for internally displaced persons, and also includes the geographic expansion of microcredits’ allocation. These micro-credits are aimed at repair or restoration of basic and social infrastructure.
The project is the third in succession within the framework of the IDP’s well-being improvement project implemented by the WB in Azerbaijan. It was approved by the WB Board of Directors in October 2011.
The first credit with the worth of $10.7 million was allocated by the bank in 2001 with the view to improve IDP’s economic conditions in Azerbaijan. As many as 12.6 million was allocated for the implementation of the second project. Some $ 24.19 million was allocated for the project close-out within the framework of the additional financing as the funds turned out to be insufficient.
Earlier, Michelle Rebosio, head of the World Bank team working on the project said that the project is based on the successful experience of the bank in the sector. He also mentioned that the project is aimed at supporting IDPs to diversify their sources of livelihoods and income as well as contributing to the overall economic growth of Azerbaijan.
The main project’s cost was $78.53 million, including $28.53 million allocated by the Azerbaijani government. In total, the WB allocated $153.2 million since 2001 and helped to improve living conditions and to increase income of more than 500,000 IDPs in Azerbaijan.
The funds are expected to be used for the implementation of 250 projects concerning IDP’s in Azerbaijan.
About seven percent of Azerbaijan’s population is considered internally displaced and they constitute one of the most vulnerable segments of society. Many IDPs still lack access to quality infrastructure, social services and jobs.
Being established in 1944 and headquartered in Washington the World Bank Group has set two goals for the world to achieve by 2030. The goals include ending of the extreme poverty and promotion of prosperity. The bank is considered to be a vital source of financial and technical assistance to developing countries around the world.
Azerbaijan joined the WB in 1992. Since that time commitments to the country have totaled over $3 billion for 55 projects. The current World Bank portfolio in Azerbaijan consists of 11 active projects.