OREANDA-NEWS. February 7, 2008. World Bank Group (WBG) and Azerbaijani Government are completing preparation for Absheron Peninsula Environmental Cleanup Project.

Azerbaijani Government informed Fineko/abc.az that official negotiations on the project were set for end-April.

“The project can be examined by Board of Directors in June 2008. The Bank supposes to give $152 million to the project but the amount may change because Azerbaijan has partly fulfilled the project’s programme,” the Government informed.

Estimation mission is expected in February 2008. It will clarify the budget.

On December 12 within the framework of his trip to Azerbaijan Shigeo Katsu, WB vice president for Central Asia & Europe, visited the Absheron Peninsula to familiarize himself with situation of oil polluted lands there.

Thereby WBG claimed readiness to allocate around $100 million to Azerbaijan for this project and this amount can be increased as volume of works grows.

Initially Azerbaijan was ready to raise $60-70 million from WBG. The finances will be given equally through International Development Association (IDA) and International Bank of Reconstruction & Development (IBRD).

Total area of polluted areas on the Absheron Peninsula makes 33 300 ha, including 15 000 ha of the most polluted ones under authority of SOCAR. SOCAR has financed AZN 63 million for cleaning and recultivation of lands and State Budget AZN 18.5 million. WB can finance for the same ends $80-100 million.

For the next few years WBG is ready to finance $250-300 million for cleaning of subterranean waters, utilization of radio-active wastes of iodide-bromine production, and cleaning of oil polluted areas. Up to $75 million can be endorsed for the last two directions. Cost of the first two directions is much higher.