Contacts: In Baku: Saida Bagirli (+994 12) 492 19 41 sbagirli@worldbank.org In Washington: Michael Jones (202) 473-2588 mjones2@worldbank.org BAKU, June 24, 2009 – The World Bank today approved a $62 million equivalent IDA Credit and US$113 million IBRD loan to the Republic of Azerbaijan as additional financing for the Second Highway Project. This financing will continue the Bank’s road program in the country to enable it to become a regional transit point and promote local development. Specifically, the financing will support rehabilitation of the Hajigabul – Bahramtepe road connecting an important agricultural region in the South West of Azerbaijan–home to significant portion of the country’s population–with the main urban centers. In addition to rehabilitating 116 km of highway, the project will support the improvement of about 200 km of local roads connecting the highway with nearby villages. The Hajigabul – Bahramtepe road project has a very strong regional development dimension, as it integrates both highway rehabilitation, and village roads improvement. There is strong evidence from other projects in Azerbaijan, and elsewhere, that rehabilitation of roads significantly improves the mobility of goods and services between rural areas and urban centers, boosting businesses through a reduction in transport costs, increasing incomes, and reducing prices for the rural and urban poor. “This Project will strengthen domestic connectivity. More than half a million Azerbaijanis will directly benefit from road improvements by being better able to trade with main urban centers and neighboring regions,” said Mr. Asad Alam, World Bank Regional Director for the South Caucasus. “Projects like this one, by upgrading a network of main and secondary roads, will also benefit local communities and boost regional development, which is a major priority for the Government,” added Jacques Buré, Task Team Leader for the project. The additional financing has two components which include the civil works for the above roads, consultancy services for the engineering design of connecting roads and the supervision of the works as well as the provision of technical assistance for project implementation and the design of future investments. Azerbaijan joined the World Bank in 1992. Since then, commitments to the country total approximately US$2.6 billion for 44 operations. - | 
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