The Board of Directors of the World Bank (WB) plans to approve a new partnership strategy with Azerbaijan at the end of October, designed for 2025-2029, a source in the Baku office of the World Bank told Report.
“As part of today’s visit to Baku by the delegation headed by WB Regional Director for the South Caucasus Rolande Pryce, consultations within this framework document were continued,” the bank noted.
The previous partnership strategy, approved in 2015, was developed taking into account the serious challenges facing Azerbaijan. It focused on supporting the country to achieve better performance in public financial management and economic diversification as it transitions to a new growth model, as well as strengthening the country's resilience to external shocks.
However, since 2020, the world has faced new economic turmoil caused by the COVID-19 pandemic. The decline in global demand for hydrocarbons has led to a sharp drop in oil prices, which has had a negative impact on the Azerbaijani economy, which remains heavily dependent on the oil sector.
Despite these difficulties, Azerbaijan demonstrates its determination to transformations. The country sets itself ambitious goals for the transition to a green economy and the development of renewable energy sources.
The new WB partnership strategy with Azerbaijan is designed to support these goals. It already identifies two key projects. This includes an expansion of the employment support program in Azerbaijan: the WB plans to allocate $150 million in additional funding for this program aimed at promoting job creation and improving the skills of the workforce.
The second project involves expanding the use of renewable energy sources (AZURE). As part of this project, the WB, according to preliminary estimates, plans to allocate $250 million to support Azerbaijan in its quest for a green economy through the development of wind and solar energy.
Discussions of other promising areas of cooperation that will be covered by the new strategy are still ongoing.
Azerbaijan has been a member of the World Bank since 1992. To date, 54 projects have been implemented in Azerbaijan using WB loan funds totaling $4.4 billion.