World Bank plans to allocate up to $1.5B to Azerbaijan

The World Bank (WB) intends to provide Azerbaijan with between $1 billion and $1.5 billion over the next five years through the International Bank for Reconstruction and Development (IBRD), Report informs, citing WB.

The IBRD's preliminary plan for the 2025-2026 fiscal years includes 4-5 new projects at the request of the Azerbaijani government. Average annual financing will amount to $250-400 million. In particular, it is planned to allocate funds for the following projects - additional financing for the employment support project - $150 million, expanding the use of renewable energy sources (within the regional program) - $225 million, development of competitive and sustainable agriculture, including irrigation - $400 million, the Baku development project - $100-300 million.

It is expected that about half of these funds will be allocated by the end of June 2025, and the remainder in the next fiscal year.

The World Bank Group plans to work with the Government of Azerbaijan to identify additional cooperation measures within the framework of the long-term strategy. In the initial period, the focus will be on analytical support aimed at the transition to a low-carbon economy, the development of transport connectivity, water resources management, financial sector reform and digital transformation. This could form the basis for new investment projects in the second half of the program's implementation period.

As of early December 2024, Azerbaijan had two IBRD loan programs - in the field of employment and transport - with a total undisbursed amount of $ 176.1 million.

Azerbaijan has been cooperating with the World Bank since 1992. During this period, the WB has allocated more than $4 billion to the country for the implementation of 52 projects.

Azerbaijan owns 0.13% (2,371) of the IBRD shares. The government of the country paid $286 million for them. In the near future, it is planned to acquire another 505 shares for the amount of $60.915 million.