Azerbaijani Economy 5 november — 11:52

ADB to allocate $85 million to Azerbaijan

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The Asian Development Bank (ADB) plans to provide a loan of $85 million to Azerbaijan for the development of the irrigation system in the Nakhchivan Autonomous Republic (NAR), Interfax-Azerbaijan news agency reports.

'We are ready to allocate a loan of $85 million for this project. In addition, the bank plans to provide technical assistance for this project in the amount of $1.2 million,' the agency was told in the ADB.

According to the interlocutor of the agency, the project will support the restoration and modernisation of irrigation and drainage networks serving about 23.23 thousand hectares of land in the NAR.

The project will also help strengthen the institutional capacity for irrigation management, including support to water user associations.

In general, the project will include two indicative results: improving the irrigation infrastructure and improving the capabilities of the State Committee for Land Reclamation and Water Management (SAWMC) and water user associations (WUAs) in the field of irrigation and project management.

According to ADB estimates, increasing agricultural productivity is critical to the development of the agricultural sector and is a direct path to improving employment and income generation opportunities.

'To realise these opportunities, it is necessary to eliminate a number of problematic issues: improve the irrigation infrastructure, introduce new technologies, improve access to finance and the necessary logistics, as well as develop high-quality infrastructure,' the bank emphasised.

At the same time, the agency's interlocutor added that approval of the loan for this project is planned in 2021.

Azerbaijan has been a member of the ADB since 1999. Over the period of cooperation, the bank provided loans worth over $4 billion to the republic. According to the business plan for Azerbaijan for 2020-2022, the ADB plans to provide loans to the country in the amount of $295 million for three projects.

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