ADB announces directions of new partnership strategy with Azerbaijan

A new country partnership strategy for 2024–2028 is expected to be implemented by the Asian Development Bank (ABD) with Azerbaijan by 2024, Report informs referring to the bank.

Current ADB operations are being implemented under the country partnership strategy, 2019–2023, which aims to boost private sector development, raise public sector efficiency, improve infrastructure, and strengthen human capital, according to the report.

“ADB will focus on energy, transport, public sector management, agriculture, and education for 2023–2026. The bank will support the government in boosting regional cooperation through well-integrated regional transportation systems. The rebuilding of the regional irrigation network with ADB’s contribution will increase productivity in agriculture and help sustain food security. Energy reforms will be supported by the development of fundamental transmission and distribution infrastructure and the adoption of innovative initiatives in the sector.

Investing in the development of technical vocational education will strengthen human capital in the country. It will also help improve and build modern vocational schools and promote policy reforms,” the bank noted.

“ADB will engage the private sector for projects related to trade, finance, small and medium-sized enterprise expansion, and infrastructure development. ADB closely cooperates with the government to make local currency financing available to the private sector through local currency bonds.”

Azerbaijan aims to develop a sustainable and competitive economy, achieve an inclusive society, improve human capital, shift to “green growth,” and improve infrastructure as per the government’s 10-year development strategy, Azerbaijan 2030: National Priorities for Socio-Economic Development, the bank added.

“The government currently intends to reduce external debt and is considering external borrowing for innovation and high technology. ADB works closely with the government to establish an environment for selective lending on such projects.

Improving gender equality measures within projects, strengthening the governance and institutional capacities of implementing agencies, and promoting the financial sustainability of investments are the key focus.”

To date, ADB has provided Azerbaijan with 67 public sector loans, grants, and technical assistance totaling $3.7 billion. The total amount of credit payments to Azerbaijan is $3.96 billion. They were funded by regular and concessional regular capital resources. ADB’s current sovereign portfolio in Azerbaijan includes 1 loan and 1 sovereign guarantee for $565.2 million.

Total outstanding loans and liabilities under ADB’s non-sovereign operations in Azerbaijan as of December 31, 2022 amount to $34.7 million, representing 0.27% of ADB’s total private sector portfolio. Since 2004, the total amount of non-sovereign co-financing for 8 investment projects is $1.22 billion.