Projects in Azerbaijan

Project Summary Documents

Project Summary Documents (PSDs) are disclosed for each project prior to Board consideration. They contain project descriptions, financial details, client information, environmental issues, tender guidelines, and contact details. PSDs for private sector projects are disclosed at least 30 days prior to Board consideration and for state sector projects, at least 60 days.

Project Summary Documents 

Signed projects

Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.

Signed projects  (0.1Mb) 

Case studies

Helping entrepreneurs in Azerbaijan

Fakhraddin Bakhishev and Mahir Mishiyev form the FM Partnership, a brick-making business in the city of Sumgait in Azerbaijan. The company supplies bricks and other materials to the local construction industry.

As orders increased over the years, the company realised it needed new investment to meet this demand. Turning to Unibank for help, they received a €238,000 three-year loan, allowing them to increase production capacity and improve the range of their products.

Helping small and medium-sized enterprises (SMEs), such as FM Partnership, is the main activity of Unibank, one of the biggest private banks in Azerbaijan and the first private sector merger in the country’s banking sector. Since 2002, Unibank has provided small businesses with access to longer term loans through a €1 million credit line provided jointly by the EBRD and the International Co-operation and Development Fund of Taipei China.

In 2003 the EBRD increased our support by acquiring a 20 per cent stake in Unibank, our first in a local bank in Azerbaijan. Our financing will strengthen Unibank’s capital base and help the bank to develop new products. As a result, the bank will improve its services to SMEs and be able to pursue its long-term aim of becoming the leading full-service bank in the country – providing a full range of services to retail and business customers. Training and other assistance is being supported through funding from the EU’s Tacis programme.

Chirag Early Oil

In December 1998 the EBRD provided USD 100 million of own financing and arranged in co-operation with the IFC USD 85 million of commercial bank co-financing for five companies involved in the development of the Azeri, Chirag and Guneshli offshore fields. These fields are under development by an international consortium on the basis of a Production Sharing Agreement signed in 1994 - the first of its kind in Azerbaijan. The financing arranged by the EBRD was directed to the so-called "early oil" phase, which encompasses the initial development of the Chirag field and in particular the refurbishing of an existing offshore platform, the drilling of wells, building sub-sea pipelines, repairing and completion of two oil export pipelines and installing terminals in Azerbaijan and Georgia.

Microfinance Bank of Azerbaijan

The promotion of micro, small and medium-sized enterprises is one of the most promising routes for the diversification of Azeri economic development. To promote this, the EBRD invested US$1.3 million, in July 2002, along with IFC, KFW and BSTDB in the newly created Microfinance Bank of Azerbaijan and arranged technical assistance totalling € 1.3 million, funded by EU TACIS for the start-up of the Microfinance Bank. The bank started to operate in October 2002.

Yenikend Hydropower Plant

In December 1994, the EBRD provided a loan of US$ 53.2 million to enable Azerbaijan to complete construction of the Yenikend Hydropower Station located on the Kura River. Completion of the power station boosted hydropower generation by 520 GWh per year, allowing Azerbaijan to increase its fuel oil exports and to reduce gas consumption. The total project costs were US$ 75.1 million. The EBRD has provided technical assistance to Azerenerji financed by the donors, such as EU TACIS, in the areas of management, accounting and financial monitoring to help the utility operate on a commercial basis.