OREANDA-NEWS. May 12, 2011. European Investment Bank (EIB) and the Azerbaijani government keep on  coordinating legal reasons for beginning of Bank’s work in the country.

Today in Baku head of EU delegation in Azerbaijan Roland Kobia has reported that a few months ago the bank’s mission visited Azerbaijan, held talks with the government and announced its desire for active cooperation in this area.

"There are many large project we would like to realize in Azerbaijan and EIB can become serious participant of these projects. Now the issue of the bank’s seriousness and financial potential is on the agenda. At present European Bank for Reconstruction and Development (EBRD) is operating in Azerbaijan which is a ready active institution in Azerbaijan. That is why we are presently holding talks with Azerbaijan for the bank to work on regular basis ",- Kobia said.

Earlier the sides could not adjust differences on framework agreement between Azerbaijan and EIB. That is why talks were conducted between the MED, the Ministry of Finance, the Ministry of Foreign Affairs, the Ministry of Justice, the National Bank of Azerbaijan, and EIB. Following the parties could remove the disagreements only partly.  Disagreements kept on some protocol and legal issues and the sides continue negotiating for their final removal. As the framework agreement with the government has not been signed so far, EIB cannot start financing projects in the country, and Azerbaijan still remains the single country of the region not having agreement with EIB.

Earlier the draft was made amendments recommended earlier by governmental agencies of Azerbaijan. The framework co-operation agreement will define the order and scheme of EIB operations in the country.

EIB with service of the European Bank of Reconstruction & Development is ready to invest up to USD 500 million in development of Azerbaijan State Railway Company (ADDY). The orbit of its interests in the country includes transport and energy projects of regional character.

The rate on joint credit of these banks is expected at the level of Libor+0.55%.

EIB will apply experience of the EBRD to carry out due diligence, but will make investments independently. At the same time its priority is regional projects to be presented by Azerbaijan as well. Energy sector, energy resources, and their transportation are of special importance for it. EIB is ready for co-financing, consultations, information exchange, technical assistance, and project preparation. The European Neighborhood Program (ENP) tools will be applied to prepare projects.