The Azerbaijani government is exploring and identifying new opportunities for expanding cooperation with the European Bank for Reconstruction and Development (EBRD) on seven priority directions for the country in development, Report informs referring to a source in the government.
The EBRD proposed the following directions: development of the private sector and SMEs; increasing the efficiency of state support for private entrepreneurship; privatization; raising the level of private sector participation in areas such as economic growth and employment; deep reform of state-owned enterprises aimed at improving efficiency, transparency, and competitiveness; expansion of public-private partnerships; expansion and further development of the digital economy.
The source said the EBRD has always been Azerbaijan’s reliable and essential development partner. The bank has implemented 175 projects in Azerbaijan for a total amount of more than 3.123 billion euros, of which 13 are in the public sector (1.6 billion euros), and 162 are in the private sector (with a 23 percent share of the portfolio).
On November 22, 2019, Azerbaijan joined the EBRD donor community for the first time, signing a contribution agreement and contributing 2 million euros to the Eastern Europe Energy Efficiency and Environment Partnership (E5P), as well as joining the EBRD Technical Cooperation Fund, where its contribution was the same.
In turn, the EBRD launched the Green Program in Azerbaijan. Ganja has been selected as a partner city under this initiative. The first project will begin in 2021.
The EBRD has allocated 10 million euros to Azerbaijan to clean solid household waste in Ganja city. The bank will assist in the renovation of the municipal solid waste collection infrastructure in Ganja.
The EBRD plays an essential role in financing the private sector in Azerbaijan and contributes to small and medium-sized businesses. Thus, in early 2020, the EBRD and the Central Bank of Azerbaijan signed an agreement (a swap agreement for $50 million), as a result of which Azerbaijani companies can use loans denominated in local currency.
Azerbaijan has been a member of the EBRD since 1992.