WB to approve new partnership strategy with Azerbaijan for 2025-2029

The World Bank (WB) Board of Directors plans to approve a new partnership strategy with Azerbaijan for 2025-2029 at the end of October.

"During today's visit to Baku, a delegation led by WB South Caucasus Director Roland Price continued consultations within the framework document," Caliber.Az reports via WB Baku office.

The previous partnership strategy, approved in 2015, was developed considering the serious challenges facing Azerbaijan. It focused on supporting the country to achieve better public financial management and economic diversification as it transitioned to a new growth model, as well as strengthening the country's resilience to external shocks.

However, from 2020 onwards, the world has faced new economic shocks due to the COVID-19 pandemic. The decline in global demand for hydrocarbons led to a sharp drop in oil prices, negatively impacting the Azerbaijani economy, which remains heavily dependent on the oil sector.

Despite these difficulties, Azerbaijan has shown determination to transform itself. The country has set ambitious targets for transitioning to a green economy and developing renewable energy sources.

The WB's new partnership strategy with Azerbaijan is designed to support these goals. It has already outlined two key projects.

One is the expansion of the employment support program in Azerbaijan, with the WB planning to allocate $150 million in additional funding to promote job creation and improve workforce skills.

The second project involves expanding the use of renewable energy sources (AZURE). The WB, according to preliminary estimates, plans to allocate $250 million to support Azerbaijan in its pursuit of a green economy through the development of wind and solar energy.

Discussions on other promising areas of cooperation to be covered by the new strategy are still ongoing.

Azerbaijan has been a member of the World Bank since 1992. To date, 54 projects have been implemented in Azerbaijan with WB credit funds totaling $4.4 billion.