IFC gets proposals on joint projects in renewable energy
Azerbaijan strives to cooperate with foreign investors to develop renewable energy sector to not rely on hydrocarbons that are being run out and which are not also environmentally friendly.
Azerbaijan and International Financial Corporation (IFC) discussed renewable energy cooperation opportunities.
Prospects for the development of renewable energy and creation of efficient, competitive energy market were discussed with the Delegation of International Finance Corporation at the Energy Ministry.
Deputy Energy Minister Samir Valiyev recalled IFC's participation in financing Baku-Tbilisi-Ceyhan project and talked about new opportunities for cooperation.
He informed about the work done in Azerbaijan on energy efficiency and renewable energy sources development.
He underlined that the country has been cooperating with the public and private sectors as well as with various international organizations in the development of renewable energy legislation, energy market law.
It should be noted that at present, Norwegian DNV GL is cooperating with Azerbaijan on the creation of a support system and a legal framework in Azerbaijan's alternative energy sector. The new draft law on alternative energy sources in Azerbaijan will be ready by May 2019.
IFC Regional Director for the Caucasus & Russia Jan Van Bilsen said that the organization represented by the World Bank Group had long-term cooperation with Azerbaijan in various areas, including the energy sector.
He said that IFC is ready to share experience with Azerbaijan on the development of renewable energy sources in different countries, private sector involvement in energy efficiency and trade.
The importance of the development of renewable energy sources on the basis of market mechanisms, the creation of a competitive environment for manufacturers and ensuring the participation of private companies in this field, was highlighted.
At the event, the sides agreed to submit proposals to the International Finance Corporation for the implementation of joint projects in the field of renewable energy. IFC is one of the World Bank Group Companies, with 182 members. The IFC promotes sustainable economic growth in developing countries through financing private sector investment, directing capital to international financial markets, and consulting services to companies and governments.
IFC helps companies and financial institutions to create jobs in emerging markets, improve tax revenues, improve corporate governance and environmental protection, and contribute to local communities
Azerbaijan became a member of IFC in 1995. Since then, IFC has invested around $473 million in the country, of which $73 million was mobilized from other lenders. The funds have financed 56 longterm projects across a range of sectors, including financial services, infrastructure, and manufacturing. In addition, IFC has supported around $100 million in trade through its trade finance program, and provided $250 million for the Baku-Tbilisi-Ceyhan pipeline. IFC has also implemented a range of advisory projects aimed at encouraging private sector growth.