Next Year, Government Intends to Borrow $ 1.3 Billion Abroad for Infrastructure Projects

The government intends to draw from international financial institutions $ 1.3 billion (2 billion manat) for infrastructure projects, the Accounting Chamber said on the draft state budget for the year 2017.

The economist Rovshan Agayev said that part of these funds will be used by state-owned companies. In addition to external borrowing, for the implementation of public investment programs AZN 2.5 billion will be allocated from the state budget.

Most of all for investment projects will receive SOCAR – 612.2 million manat. JSC Azeravtoyol will receive from the state budget 290.4 million manat, the Ministry of Transport - 100 million manat, and Azersu - 95 million manat.

In 2017 the government will send to the development of cotton production 300 million manats. Of this, 200 million manat will be for the purchase of necessary equipment for the cultivation of cotton, and 100 million manat – for creation of sowing infrastructure.

Rovshan Agayev believes that due to the fact that the state funding for the first time regards a particular industry, the government must submit to Parliament a reasonable program for the development of cotton production.

"In this document, the government must present its vision for the development of this industry in the coming years, according to aspects of risk expectations based on global trends in the cotton market, the ways of its elimination, etc." The expert recalled that it was due to the absence of such programs that projects worth $ 2 billion financed by the International Bank of Azerbaijan failed.    ---08D