Press Release, June 23, 2000
World Bank Supports Rehabilitation and Completion
of Irrigation and Drainage Project in Azerbaijan

Contact Person:
Gina Ciagne (202) 458-4166
Email: Gciagne@worldbank.org
www.worldbank.org/developmentnews

WASHINGTON, June 23, 2000--The World Bank has approved a US$42 million equivalent credit to finance the Rehabilitation and Completion of Irrigation and Drainage Infrastructure Project for Azerbaijan.

The project aims to prevent the decline in supplying water to Baku City; eliminate further deterioration of the supply of irrigation water along the Samur-Apsheron Canal; and improve drainage and reduce water logging and salinity in irrigation areas along the Main Mill-Mugan Collector. The project includes the following three components:

· Rehabilitation and Completion of Irrigation and Drainage Infrastructure. Through this component, the project will support rehabilitation of critical main infrastructure of the Samur-Apsheron Canal System, including headworks, canal lining, hydraulic structures and inter-farm canals; and completion of the Main Mill-Mugan Collector, including 31 km of the main collector, appurtenant structures and lower-order collectors.

· Institutional Strengthening. Through this component, the project will support institutional development to make a start with the improvement of the quality and sustainability of irrigation management. There are three sub-components: institutional support for Samur-Apsheron Canal System management; preparation of an Irrigation Sub-sector Review; training and study tours; and preparation of a comprehensive feasibility study to review technical, environmental, social, and economic viability of the expansion of the Samur-Apsheron Canal System.

· Project Implementation Support. This component will finance support for the Project Implementation Unit, a technical assistance team of international specialists; annual monitoring and evaluation and environmental surveys; and the annual audit of the project accounts.

The total cost of the project is US$46.86 million, including US$4.86 million from the Government of Azerbaijan. The credit will be disbursed on standard IDA terms and will be repayable in 35 years, including a 10 grace period. Since Azerbaijan joined the Bank in 1992, commitments to the country total US$411 million for 15 projects.