OREANDA-NEWS. April 10, 2008. The Azerbaijani government and World Bank Group (WBG) have launched negotiations on a new social project.

The Baku-based WBG representative office informed that the WBG mission led by project manager Alexandra Posarak has been visiting Baku since April 3 and is conducting official talks.

“Official negotiations started yesterday and at the moment it is difficult to predict terms of their completion. WBG is ready to extend a \\$25 million loan for Pension & Social Assistance Project (PSAP) on the International Development Association standards and the sides are negotiating the project budget, its components, and financing by the Bank. In any case Ms. Posarak is due to visit Azerbaijan until April 17,” the WBG office said.

The Ministry of Labour & Social Security of Azerbaijan is planning to raise a grant from the Japanese government for this project.

The project is aimed at reducing poverty level in the country, creating social expertise to establish invalidity level and conduct structural changes, and staff training.

WBG orients PSAP on improvement of both social security and a programme of labour market policy. The Project stipulates a programme of social services with purpose of social system improvement, introduction of social rehabilitation programme. The five-year project will be financed through International Development Association.

The WBG group in collaboration with the Ministry and the State Fund of Population’s Social Security is realizing now PSAP in Azerbaijan endorsed by the WB Board of Directors on June 10, 2004.

The WBG Board of Directors financed a \\$10 million credit line for PSAP for 35-year period with 10-year grace term and interest rate of 0.75% per annum. Project period is under February 28, 2009. The government and WB signed a PSAP credit agreement on September 23, 2004. The project was launched on April 21, 2005. The project is designed for target social assistance, provision of tools of protection of vulnerable groups of the populations on principles of equality and justice, introduction of system of individual registration on social insurance fees. Training courses for employees and public information will also be conducted within the project.