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No. 212/02 14 November 2002

Helping Displaced Persons in Azerbaijan

BAKU, AZERBAIJAN (14 November 2002) - The Asian Development Bank (ADB) has signed an agreement to help internally displaced persons (IDPs) integrate into the social mainstream in Mingechevir, one of the poorest regions in Azerbaijan. A grant of US$2.5 million will be provided for the project from ADB's Japan Fund for Poverty Reduction (JFPR), financed by the Government of Japan.

The project (Integration of Internally Displaced Persons in Mingechevir) will address one of the main objectives of ADB operations in the country: providing assistance to IDPs, who are among the poorest and most vulnerable of Azerbaijan's population.

The project will support a pilot project to relocate about 400 IDP households, currently crowded into a number of schools and public buildings, to a new settlement area, using community-based approaches. In addition to the settlement construction, schools vacated by the IDPs will be rehabilitated. The relocated families will be provided with income-generating opportunities to improve their livelihood after the relocation.

Poverty in Azerbaijan rose to 50 percent of the population during the last decade, with very high levels among IDPs, who are especially vulnerable because many come from rural areas and have few of the skills needed for urban living.

To implement the project, the Government is providing the equivalent of about US$100,000 for the provision of off-site infrastructure for the settlement. The State Committee for Refugees and IDPs will oversee the implementation of the project. The project will be implemented by an international NGO, World Vision Azerbaijan.

The JFPR, which was set up with an initial contribution of 10 billion yen (about $90 million) in 2000, followed by additional contributions of $155 million and a commitment of $50 million. The fund supports projects that targets poor people and prioritizes innovative approaches.

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