Azerbaijan, ADB to deepen ties further

/AzerNews/

By Aynur Jafarova

Azerbaijan and the Asian Development Bank (ADB) will continue deepening bilateral relations as part of a cooperation strategy for 2014-2018, ADB President Takehiko Nakao said at a press conference in Baku on November 4.

"Cooperation within the framework of this strategy will help Azerbaijan diversify its economy and develop its private sector," Nakao said.

He also noted the issue of increasing the share of Azerbaijan's participation in the capital of ADB could be considered under certain conditions.

"The increase of the country's participation share is an issue that should be discussed directly with the shareholders," he said. "This happens when the issue of increasing the authorized capital of the bank is discussed. At the moment, there are no plans to increase the capital of ADB, so we have not yet considered to increase Azerbaijan's share."

Nakao also said given Azerbaijan's growing economy, the issue of increasing the share of the country in the authorized capital will be discussed by the shareholders in case of necessity.

Currently, the equity participation of Azerbaijan in the capital of ADB is 0.46 percent, and the right to vote stands at 0.67 percent.

"Despite the fact that the share of voting is a bit higher than the equity participation, this ratio increases the weight of the voice of small countries," Nakao added.

The ADB president also didn't exclude the possibility of participation of Azerbaijan as an investor in the bank's projects in the future.

"There is a capacity for such a participation. For example, China acts as an investor, and at the same time gets loans for implementation of certain projects. Given the pace of economic development of Azerbaijan, we do not exclude the possibility of participation of the country as a co-investor in any projects in the future," he stressed.

In his remarks, ADB's Country Director to Azerbaijan Olly Norojono said besides the implementation of major infrastructure projects, reflected in the strategy of cooperation with Azerbaijan in 2014-2018, ADB intends to provide technical support to education in the country.

"According to a draft business plan on operations in Azerbaijan in 2015-2017, the ADB is ready to allocate $752 million for three years to the projects implemented in Azerbaijan. The project is awaiting approval of the country's government. After that, it would become clear whether Azerbaijan is ready to accept these funds or not. ADB annually allocates loans worth approximately $155 million from its own resources," he stressed.

Norojono also noted ADB is interested in cooperation with Azerbaijan not only in water supply, road construction and city infrastructure, energy and transport sectors, but also in the development of renewable energy sources, microfinancing, technical support o education, as well as waste management.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members - 48 from the region. In 2013, ADB assistance totaled $21 billion, including co-financing of $6.6 billion.