19 September 2008
AssA-Irada

The World Bank has allocated a $25 million loan to finance reforms in Azerbaijan’s education system. A relevant loan covenant was signed with the government at the Ministry of Education on Wednesday.

The document, co-signed by Minister Misir Mardanov and Head of the WB office in Baku, Gregori Yedzherchak, envisions funding the second project on developing education in the country.

The loan will be disbursed by the International Development Association (IDA) working closely with the WB.

A total of $45.4 million will be desginated for the project, with $20.4 million of the amount to be allotted by the Azerbaijani government. The credit, with a 10-year grace period, will be repaid from 2018 to 2028, with 1.25% annual interest rate. If the loan is not fully repaid by then, it will be repaid with a 2.5% interest rate until 2043. Mardanov said the project, which will be implemented in 2003-2013, consists of the following components - curriculum reform; increasing the professionalism of teachers, expanding the potential of bodies overseeing the field of education, developing education in schools, and monitoring and assessment of the project.

He emphasized that the WB has allocated over $30 million to support education over 10 years of its cooperation with the Azerbaijani government. The assistance included both concessional loans and grants.

Yedzherchak said in his remarks that the project builds on international experience. He said that as a result of the project, the skills of Azerbaijani teachers will be improved and the country’s education system will meet European standards.