On 19 May, the Asian Development Bank (ADB) unveiled its Business Plan for the period 2020-2022 in Azerbaijan, reported Trend.

The strategy seeks to support diversified and inclusive growth in Azerbaijan through three strategic directions that include stimulating the development of the private sector, increasing the efficiency of the public sector, and improving infrastructure and strengthening human capital.

The direction of increasing the efficiency of the public sector is focused on strengthening the management system and institutional capacity, while improving infrastructure is focused on improving the standard of living in cities, promoting regional cooperation and integration.

The ADB also stressed that the Business Plan is consistent with the Country Partnership Strategy (CPS) 2019-2023 for Azerbaijan. “The CPS is demand-driven and provides a flexible and adaptive approach to changing circumstances, based on a wide range of ADB tools and methods. In other words, since both the public and private sectors are still consolidating after the economic downturn of 2015-2017, following the shock of oil prices in 2014, the bank’s participation in the early years of the CPS will focus on supporting the government through political operations, analytical and advisory assistance including for the preparation of projects, as well as technical assistance in strengthening the capacities of relevant government agencies and the private sector,” the ADB said.

In addition, depending on market conditions and capabilities, the ADB operations will be directed to supporting the private sector through appropriate financial intermediaries, as well as small and medium enterprises, especially those who are involved in non-cyclic sectors and other underserved client segments.

The Asian Development Bank is a regional development bank established on 19 December 1966 to promote social and economic development in Asia. The bank has 68 member states and Azerbaijan joined in 1999. Since Azerbaijan is a resource-rich, upper middle-income country pursuing an ambitious economic diversification agenda, the ADB is emphasizing support for structural reforms, institutional strengthening, expansion of knowledge work, and financing of innovative projects. The bank is also helping the country meet the Sustainable Development Goals and attain its nationally determined contribution under the Paris Agreement of the United Nations Framework Convention on Climate Change. Since 1999, ADB has committed $4,411.56 million in loans, $32.28 million technical assistance projects, including ADB-administered co-financing for Azerbaijan. Cumulative loan disbursements to Azerbaijan amount to $3.53 billion. These were financed by regular and concessional ordinary capital resources.