ADB Head Names Priority Areas of Cooperation with Azerbaijan

Baku / 02.06.20 / Turan: The Asian Development Bank (ADB) will continue to support the strategic development agenda of the Government of Azerbaijan, aimed at accelerating economic diversification and promoting inclusive growth, as well as early economic recovery after the coronavirus crisis. At the same time, the development of infrastructure is envisaged in order to better meet the needs of a diversified economy, and to promote partnership between the public and private sectors.

This was stated by the head of the ADB Masatsugu Asakawa at a video conference with the participation of Azerbaijani President Ilham Aliyev and the leadership of the said international financial organization.

“Partnership between the public and private sectors remains the main theme of the projects implemented by us with the government. In the field of management, we must act with a very active position. The issue of the ratio of external debt and gross domestic product relates to this area, and this ratio is shrinking at a faster pace than expected,” Asakawa said.

ADB also intends to support the investment of “innovative high-tech projects” and in particular those areas that the government considers strategic. “For example, water resources, management, financial, energy efficiency, etc.,” he continued.

In particular, the project of irrigation and the development of drainage systems is of particular importance. “Secondly, vocational education and trade liberalization are also part of our program. Finally, thirdly, there is financing of small and medium enterprises, which will play a catalytic role. We also remain committed to energy distribution commitments. For this purpose, an investment program to improve the power grid is provided. If your government makes a positive decision, then these programs can be implemented,” Asakawa said addressing the President.

Aliyev expressing gratitude for supporting Azerbaijan’s plans to diversify the economy noted that the irrigation project in Nakhchivan is already close to being agreed with ADB.

The total loan amount for this project will be approximately $ 100 million.

“In addition, I would like you to consider our plans related to irrigation throughout the country. We are currently assessing the situation and see that we are facing huge water losses. In some cases, due to outdated infrastructure and an inefficient water management system, we lose 40-50 percent of the water,” he said.

Azerbaijan also intends to develop alternative energy sources.

In January of this year, two preliminary agreements were signed with two large companies operating in this area. Total energy production will be 400 megawatts. Investments will come completely from abroad, and there will be two power plants - solar and wind. Azerbaijan intends to develop this sector.   –06B-