Azerbaijan-EIB: Cooperation on Environment

zerbaijan can cooperate with the European Investment Bank (EIB) only on two conditions: the Bank-financed projects will be developed by the Ministry of Agriculture, and the second, loans will be provided to support the private projects implemented by the agency. This was said by Agriculture Minister Heydar Asadov at a meeting with Vice-President Laszlo Baranai in Baku on October 12.

As the priority areas for Azerbaijan lending the minister named production of hybrid maize seed, the establishment of the processing enterprises, including milk processing, large livestock complexes, purchase and installation of modern irrigation systems.

In turn, the representative of the EIB welcomed the prospects of development of agricultural production in Azerbaijan. He noted that the lending bank will not require a state guarantee. If there is an agreement between the parties, the credits will be provided for a long term.

The possible volume of loans is not reported.

The EIB is the largest credit institution in the world - even more than the World Bank. The size of its loan portfolio is 72 billion Euros (2010).

The EIB plays an important role in financing for development - both within the EU and beyond. However, the bank often disregards environmental and social aspects of its investment and is extremely reluctant to provide information to the public, and its staff is too small to ensure effective monitoring of projects.

CEE Bankwatch Network, which brings together non-governmental organizations from different countries in Central and Eastern Europe (CEE), urged the EIB to justify its name Bank of the EU and to become a transparent and accountable organization, for which it is important to provide true social welfare and positive environmental and social impacts, and not only the volume of credit operations and the operating profit. --08D--