(MENAFN- Trend News Agency)
BAKU, Azerbaijan, September 9 . The Southern Gas
Corridor is expandable, and should a decision be taken to do so, we
will be glad to engage with Azerbaijan, President of the European
Bank for Reconstruction and Development (EBRD) Odile Renaud-Basso
said in an exclusive interview with Trend ahead of the visit to Azerbaijan.
“Historically, we have had very fruitful cooperation with
Azerbaijan. In the past, the bank supported the Southern Gas
Corridor project with 1.7 billion euros of financing through Shah
Deniz 2, TANAP and TAP. Currently, our strategic focus is on
supporting the development of the country's non-oil sector,
including renewables. Following President Aliyev's signing and
approval of the renewable energy law, we invested 21.4 million
euros in the first privately owned, utility-scale solar power plant
in Garadagh. This was a milestone agreement which is set to pave
the way for further renewable projects in Azerbaijan,” she
said.
Odile Renaud-Basso pointed out that at the policy level, EBRD
recently supported the Ministry of Energy in developing a renewable
energy framework, including an energy regulator and renewable
energy auctions.
“We also helped the ministry to conduct a grid strengthening
study. We now stand ready to invest in grid improvements across
Azerbaijan, which is a precondition for further development of its
renewable energy sector. The Bank is open to exploring
opportunities to invest in other renewable energy projects. We are
preparing to invest in a first of its kind wind power plant on the
Absheron peninsula. We understand that the capacity of the Southern
Gas Corridor is expandable, and should a decision be taken to do
so, we will be glad to engage with Azerbaijan. But, for the Bank to
be able to finance the project, it will need to be aligned with the
goals of the Paris Agreement and the Bank's Fossil Fuel approach
including mitigation of the carbon lock-in risk, through
future-proofing the capacity to transport low carbon gases,” said
the EBRD president.
As for the Green City Action Plan for Ganja city, Odile
Renaud-Basso noted that the 5 billion euros EBRD Green Cities
program helps member cities to identify, prioritize and tackle
their most pressing environmental challenges by developing
tailor-made Green City Action Plans (GCAP) and making targeted
investments to address each city's urban challenges.
“There are currently 56 cities in the Green Cities network and
Ganja is the first Azerbaijani city to have joined the program in
2020. We launched the Ganja GCAP in July. As well as identifying
and prioritizing challenges and climate change risks, GCAP also
addresses these issues through targeted investments in urban
infrastructure and policy actions. The GCAP is also a tool to
attract funding for long-term sustainable urban development.
Earlier this year, we provided a loan of 10 million euros to
introduce smart waste collection and route optimization systems in
Ganja. For more than 300,000 people living there, this means
minimization of waste burning, improved public health and general
environment, but also better working conditions for the municipal
staff,” she said.
The EBRD president noted that during her visit next week, she
will sign an agreement to help upgrade Ganja's municipal street
lighting.
“We would like to thank the Ministers of the Economy and
Finance, other cabinet ministers, and mayor of Ganja for their
continued support for the projects under the Ganja Green Cities
program. We hope that this will be one of the many investments in
Azerbaijan's green infrastructure,” she said.
Odile Renaud-Basso believes that for Ganja's residents, the
Street Lighting Project will mean substantial energy-efficiency
gains, better road safety and greater levels of security.
She didn't rule out the possibility of implementation of this
initiative in other Azerbaijani cities as well.
“Yes, and we are happy to explore relevant opportunities,” noted
the EBRD president.
Regarding the timeframe for other Azerbaijani cities joining the
program, Odile Renaud-Basso noted that among other factors, this
depends on the timing of applications from relevant municipal
authorities.
“There will also be investment opportunities beyond the green
cities program,” she explained.
Touching upon the cooperation in the sphere of finance, Odile
Renaud-Basso pointed out that EBRD remains committed to financing
Azerbaijani banks in 2022 and beyond.
“Admittedly, some challenges remain, including the repercussions
of the 2015 devaluation and COVID-19 impact which can still be felt
to this day to an extent, with some banks (particularly smaller
ones) still catching up in terms of performance, profitability and
quality of the loan book. Despite all this, we have remained
engaged with the Azerbaijan banking sector through difficult times,
and this cooperation continues as we speak. We are currently
working on several facilities in line with our main strategic
topics such as promotion of international trade, support to micro,
small and medium-sized enterprises, as well as green and inclusive
financing. I am confident that such prospects are positive, and our
team in Baku is currently working hard on multiple workflows in the
financial sector of Azerbaijan,” said the EBRD president.
She noted that the EBRD is currently financing local private
banks promoting international trade.
“We are also continuing our support to micro, small and
medium-sized enterprises through green and inclusive financing. We
are also focusing on providing financing in the local currency
wherever possible, which is very important. At the policy level, we
are closely engaged in supporting Azerbaijan's regulatory
improvements through advice to the authorities. We are also
involved in strengthening internal capacity of our partners through
advisory support. We stand ready to support the most critical
elements of Azerbaijan's financial infrastructure, to help with
improvements in corporate governance, but also to assist with
privatization efforts, if requested by relevant stakeholders,” she
said.
Talking about her visit program to Azerbaijan next week, Odile
Renaud-Basso said she is very much looking forward to this visit
where she will meet Azerbaijan's political leadership, diplomatic
community, business clients and partners.
“During my time in Baku, I will reiterate our support to
Azerbaijan and its green transition agenda, enhancement of
transport connectivity, sustainable infrastructure and policy
dialogue. We are expecting some very interesting and fruitful
discussions. By the way, before the visit, I also held virtual
meetings with a diverse group of Azerbaijani civil society
representatives. We are set to sign an agreement on the Bank's
second Green City project in Azerbaijan. We will also inaugurate a
joint project with AzPromo, the national investment promotion
agency, which aims to boost the country's telecommunications, media
and technology (TMT) sector,” the EBRD president concluded.
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