Azernews.Az

By Nigar Orujova

The Asian Development Bank has approved a new business plan for operations in Azerbaijan.

The business plan that will cover 2016-2018 will provide Azerbaijan with funds from ADB only as ordinary capital resources, the bank reported on December 14.

The estimated cost of the ADB loan program in Azerbaijan for 2016-2018 is $2.24 billion. The total cost of the projects, taking into account the interest of the Azerbaijani government, is $3.08 billion.

ADB funds will be directed to water, transport (road and railway), as well as energy projects.

The total volume of technical assistance, which will be provided by the Asian Development Bank in 2016 and 2017, amounts to $3.8 million. The business plan does not envisage funds for 2018.

The funds of technical assistance are intended for the preparation of the investment program in the field of railway, multitranche water supply and sewerage services funding program, promotion of financial integration, support for improved governance, the drafting of the education sector development project.

Founded in 1966, ADB has 67 members today. The bank's headquarters is located in Manila, Philippines. Azerbaijan became member of the bank in December, 1999. The country’s share in the bank's capital is 0.5 percent.

Since 1999, Azerbaijan has received 20 project loans, and 1 project grant totaling $1.64 billion, including 6 non-sovereign loans of $143 million, and $14.4 million in technical assistance grants to support its development programs.

ADB's leading shareholders are Japan and the U.S. (31.2 percent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent).

In September, the ADB has kept its forecast for economic growth in Azerbaijan at a level of three percent in 2015. The bank also kept Azerbaijan’s GDP growth forecast at roughly 2.8 percent in 2016.

The ADB also reported that it believes that Azerbaijan will see one of the lowest inflation rates in Central Asia. According to the bank forecasts, inflation will hold steady at six percent in 2015 and 5.5 percent in 2016.