Contacts: In Baku: Saida Bagirli (+994 12) 4921941 sbagirli@worldbank.org In Washington: Michael Jones (202) 473-2588 mjones2@worldbank.org WASHINGTON, March 11, 2008 - The World Bank today approved a US$15 million credit to Azerbaijan to improve living conditions, enhance economic opportunities and increase prospects for social integration for those displaced by the conflict with Armenia which ended in 1994. The additional financing to the Internally Displaced Persons’ (IDPs) Economic Development Support Project will support the scaling up of the micro-project component of the ongoing IDPs Economic Development Support Project to meet the needs of an additional 150,000 people living in Internally Displaced Persons (IDP) communities across Azerbaijan. The Additional Financing will also cover the operational cost of the Social Fund for the Development of Internally Displaced Persons (SFDI), the implementing agency of the Project. “This additional financing is the World Bank’s response to the Azerbaijani Government’s interest to build on positive results gained during implementation of the ongoing IDPs Economic Development Support project,” said Gregory Jedrzejczak, World Bank Country Manager for Azerbaijan. Approved in 2005, the ongoing IDPs Economic Development Support Project has three components including micro-projects, micro-credits, and implementation support. Thus far, the micro-project component has financed more than 150 small-scale projects, including repairing, rehabilitating or building basic infrastructure such as water supply networks, power supply, access roads, and drainage systems, as well as social infrastructure such as schools and community centers. The project has also financed the repair and rehabilitation of temporary shelter facilities. “We are very pleased to provide additional support to the Government’s project by financing small projects such as school renovations or water access that respond to the priorities of the IDP communities themselves. Many have been living under difficult conditions for a number of years and these targeted projects improve their lives,” said Ellen Hamilton, who led the project team during preparation of the project. "Beneficiary participation is an important element of the project, with local IDP communities themselves proposing the micro-project investment, evaluating the impact after completion and managing it in the long term,” added Jo de Berry, the new Task Team Leader. “So alongside the improvement of physical living conditions, the project also promotes opportunities for IDP involvement and decision making with positive results for their social and psychological well being." By the end of December 2007, a total of 125 micro-projects had been completed or were under implementation, while another 38 micro-projects were at various stages of preparation, tendering and contract negotiations. Total commitments for these operations totaled approximately 100 percent of the US$10.5 million originally allocated. Azerbaijan joined the World Bank in 1992. Since then, commitments to the country total approximately US$1.072 billion for 37 operations. The IDP Project is part of a very dynamic relationship between Azerbaijan and the World Bank. “Due to the professionalism and trust built between the teams involved, the Bank and Azerbaijan have entered into a new phase of cooperation, which will lead to more efficient reforms and the improved well being of Azerbaijani people,” said Gregory Jedrzejczak, World Bank Country Manager for Azerbaijan. As a result of this cooperation, the World Bank and Azerbaijan have recently agreed on ten new projects, and a variety of technical assistance activities aimed at improved management of oil revenues and diversification of the non-oil economy, as well as improvements in the social sector. - | 
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